We’ve got a problem here, a problem with the economy.
And this affects you — no matter how much (or how little) you have stashed away.
Today I’ll explain what the problem is.
Then we’ll start to explain how it’s going to affect your investments…
And most importantly, we’ll show you a simple way to survive this mess.
It Was Supposed To Be Temporary…
Because of Covid-19, many non-essential businesses were asked by their state government to close. Others were ordered to close.
That’s why, according to the U.S. Bureau of Labor Statistics, the number of unemployed Americans in August was 13.55 million.
But as data resource Trading Economics just wrote:
“Official figures still may be far off the reality as many people are being classified as employed even though they are absent from work.”
That explains why other estimates put the unemployment figure closer to 30 million.
This wave of unemployment was supposed to be temporary.
But it hasn’t turned out that way…
But It’s Become Permanent
Last month, it become clear that many of the people who’d been temporarily laid off would become permanently unemployed.
As Politico reported, “Layoffs taking place now are more likely to be permanent.”
And as the University of Chicago wrote, a whopping “42 percent of recent layoffs will result in permanent job loss.”
But post-Labor Day, the news is getting even worse.
As The New York Times reported yesterday:
- SeaWorld is turning many of its furloughed staff into permanent layoffs.
- It's the same story at watch company Movado, at clothing company Guess, and at Royal Caribbean Cruises.
- And now more and more companies are warning about the future — like American Airlines, which expects to cut 19,000 jobs by October 1.
Even worse, as The Times summed it up, “this trend seems likely to continue.”
“This Coronavirus Is Here for the Long Haul”
You see, as reported in the science journal Nature, Covid-19 is here “for the long haul.”
As of July, there’d been about 10 million Covid-19 cases worldwide. But by March 2021, researchers estimate the case load will increase to 294 million.
Furthermore, “outbreaks could arrive in waves every winter.”
What happens next will largely depend on the arrival of a vaccine, and on how long immunity lasts.
But clearly, social distancing could be required for years to come.
And that means more job losses… and more permanent unemployment.
This Affects You
For anyone looking for the security of a paycheck, this is bad news.
But as it turns out, this doesn’t just affect the unemployed, or those who are in danger of losing their job in the future.
This affects you.
It affects your day-to-day. And it affects your nest egg.
You really need to get prepared for this.
And tomorrow, Wayne will explain why.
So please stay tuned.