Kaizen Capsules

2020 RECAP

• The pandemic sends the economy and financial markets reeling
• Congress passes $2 trillion economic stimulus bill
• The global economy stumbles, but adopt several important trade agreements
• Vaccines emerge as the stock market ends the year at record levels

After a bit of political posturing in December, the $900 billion Consolidated Appropriations Act of 2021 (2021 CAA) was signed into law by President Trump as the COVID-19 pandemic continues to impact employers and employees.

Here's a quick recap of five key highlights:

This Month’s Recap

• Stocks move higher thanks to month-long succession of positive news events
• An effective COVID–19 vaccine may be just around the corner
• Markets welcome the prospect of divided government 

U.S. Markets

This Month’s Recap:

• Equity markets drift lower in October
• Congress failed to deliver a second COVID relief bill
• Global COVID-19 cases rise, contributing to market pressures

U.S. Markets

The differences in tax policy between Presidential candidates Donald Trump and Joe Biden are pretty significant.  Current polls show the Democratic candidate with a substantial lead, which suggests we should prepare for the possibility of a different tax regime in 2021.  But what, specifically, should we evaluate as the elections approach?

Q3 QUARTERLY RECAP

• Stocks post further 2020 gains in Q3, despite a modest pull back in September
• Economy claws back adding 1.3m jobs in Aug and single digit unemployment rate
• Federal Reserve announces a shift in approach to inflation while keeping rates at historic lows

This is a friendly reminder that for those 65 and older and certain younger people with disabilities, the Medicare annual open enrollment period for Medicare Advantage and Medicare Prescription Drug coverage is almost upon us. The enrollment takes place from October 15 to December 7.