This week on the One Minute Retirement Tip podcast, I’m going in depth into our quarterly update that we send to our clients to discuss the current economic and market environment as we enter the last quarter of 2021. 

Today, I’m talking about the economy. 

A really cool milestone happened for the economy this year - 2nd quarter GDP surpassed $20 trillion for the first time ever – topping pre-pandemic levels by around 1%. What’s even more stunning is that this was accomplished with 6.7 million fewer workers compared to pre-pandemic levels. 

The shutdown and stay-at-home in 2020 wouldn’t have been possible even just a few years ago, but the technology that’s available today made it possible for people to work from home, food and groceries to still come to you without going to the store or the restaurant, and e-commerce making it all possible. 

It really shines a light on just how amazing this technological revolution is that we’re in the midst of right now, and helps explain why tech stocks have been such stunning outperformers, especially over the last 10 years. The tremendous growth in productivity that we all are experiencing will continue into the future, as businesses in every industry get better at using technology for new things. I see examples of this every day in the financial services industry, as technology makes it possible to get more done in less time with fewer headaches. 

For businesses in every industry, the Covid-driven innovation through the use of technology should also lead to better profitability and margins. 

The good news heading into the fall is that we are still just 18-months into a new economic expansion. Inventories which were significantly depleted need to be rebuilt. Inflation which has been a concern should start to moderate and The Fed remains very accommodating and is in no hurry to raise rates anytime soon. Plus, we may be near a peak in U.S. Covid infections and break-through therapeutics could be a game-changer. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip podcast. 

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