Broker Check

Quarterly Newsletter- 07/08/2021

July 8, 2021

Dear Clients,

Every so often, it is nice to take some time off work, unplug from the daily routine and go on vacation with the family. Not only do I use family vacation time to sit back, relax and recharge my batteries, but I also use it as research. By getting out of the office and out into the world, I get to see firsthand how the economy is doing and pick up new investment ideas. 

Every year our family utilizes our timeshare down at Newport Coast. This year, because of a softball tournament, my daughter Cassidy and I flew, and my wife Melissa and son Brayden drove. After going through a light security line, we walked to our gate and the airport was packed. There were people everywhere. After boarding our flight, the flight attendant broadcast over the loudspeaker our flight was going to be filled, no empty seats. It was at this point I started to believe what I had been hearing the past bunch of months on CNBC; “our economy is back.”

The idea of our economy being back was further confirmed by Melissa. She told me the drive down took longer than normal as a result of a ton of traffic. She also said all our normal pit stops were so crowded she decided not to stop. And to add insult to injury, gas prices were the highest they have ever been in all the years we have been going down there.

One of our annual traditions while being in Southern California is to visit Disneyland, the happiest place on earth. Luckily, as a result of COVID-19, Disneyland instituted capacity limitations, so the amount of people was not too overwhelming during our visit. I do believe, however, if those restrictions were not in place, the park would have been as crowded as always on a typical mid-summer day.

Lastly, restaurants. What I find interesting about restaurants is it seems to me that every restaurant that has the capability of expanding outdoors into their parking lot took advantage of it. So now, the number of customers they can serve is double or triple their pre-COVID level. Every restaurant we went to was packed! Another data point confirming the idea that our economy is back and even doing better than before.

Recently released economic data by the Labor Department back up my observations as well. The quarter-end job numbers show restaurants and other hospitality businesses added a seasonally adjusted 343,000 jobs in June. This rapid hiring reflects a renewed desire from consumers to travel, dine with friends and shop. 

So, what does this mean for the markets? It is hard to say precisely; however, I will say this. When money is moving and consumer confidence is high, companies benefit. When companies benefit, their earnings tend to rise, and their stock prices tend to follow. All good news going forward.

I hope you have a fun summer. 


Craig Rosenblatt, CPA

Financial Advisor

California Insurance License #0E18620


The views stated in this newsletter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein.  Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.  Past performance does not guarantee future results. All investing involves risk, including the possible loss of principal.  There is no assurance that any investment strategy will be successful. Investing in mutual funds is subject to risk and loss of principal. There is no assurance or certainty that any investment strategy will be successful in meeting its objectives.