On Our Minds

Equity markets moving higher

The equity markets continue to move higher on news of steady economic growth and the receding COVID virus. The S&P 500 Index has grown in each of the first seven months of the year and when this has occurred historically, it has led to further gains through year-end. Recent economic indicators are demonstrating slower and more stable U.S. domestic growth and that has inspired optimism for future earnings.

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DO I NEED A COLLEGE SAVINGS PLAN?

As a parent, if you’re not rich and you’d like to save your kids from incurring a huge debt burden, you need a plan. The good news is there are more options available to help than ever before. [To help you plan, Englewood Bank & Trust offers a college savings calculator on its website.]

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Economy enjoys stable growth

Economic indicators are proving that consumers and businesses are fueling the economy with pent-up demand on spending. Consumers are reacting to the vaccinations with robust spending on vacations, furniture, automobiles and homes, while businesses are trying to ramp up production and services to meet the need. With GDP growing at 6.5% and now back to pre-pandemic levels, this pace is not sustainable and should decelerate in the coming quarters. This does not foreshadow a recession: the economy is returning to steady 2-3% sustainable growth with stable employment and lower inflation. GDP growth would have been stronger if supply chains, home building, and product delivery had not been suppressed by inventory and labor shortages.

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Investable funds fuel financial markets

The S&P 500 index was up slightly in the month of May due to growing investor confidence in higher 2021 corporate revenues and earnings. With the receding COVID pandemic, consumers and businesses are emerging from social-distancing protocols and accelerating their spending. This strong growth in demand for goods has led to inventory shortages in many cases. Temporary delivery delays for raw materials and components are constraining global growth. Employment is expanding, however, which means goods manufacturing should improve and service industries should gain momentum.

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Cryptocurrency Becoming Less Cryptic

The creation of cryptocurrencies or digital currencies such as Bitcoin has bankers, financiers and governments pondering the long-term potential economic and political ramifications for the future. While the increasing use of digital currencies demonstrates the power of a secure, secretive payment transfer system, it also has created a loophole from government control.

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Look Out for Scammers During Tax Season

When checking your inbox this time of year, you may receive an email purportedly from the Internal Revenue Service. The subject line gets your attention with words such as “coronavirus,” “COVID-19,” and "Stimulus,” and the email seems real, with the IRS logo and other official-looking text and graphics.

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“Funny Money” No Laughing Matter

iTestCash is a company dedicated to helping big and small businesses throughout the U.S. and abroad. Its CEO, Alex Reichmann, comes from a family that has spent their lives focused on the protection of people’s money. His grandfather’s company invented the counterfeit detector pen that many banks and retail businesses use to identify counterfeit bills.

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