This Week in Rotary (12/16/2020) (Dec 16, 2020)

7:45 A.M.

INSTRUCTIONS FOR ZOOM:

Click on this link: https://us02web.zoom.us/j/87874668376?pwd=ZldtNllCWXZqRnNwVENULzd3RW8zUT09

Enter your meeting ID: 878 7466 8376
Enter your password: SMFRC2020
When asked if you want to open zoom.us, click Allow.
You may be asked to give permission to use your device's microphone and camera tools.

Before joining a Zoom meeting on a computer or mobile device, you can download the Zoom app from the Download Center. Otherwise, you will be prompted to download and install Zoom when you click a join link. You can do this from your smart phone, computer, laptop, or tablet device.

You can also join a test meeting to familiarize yourself with Zoom.

The Stow-Munroe Falls High School Interact Club will showcase their holiday project with us today. We will be amazed!!! Be sure to join our meeting!!!

Plan to look festive --- ugly sweaters, goofy hats, bell necklaces, Santa hats, use your imagination! And, invite family members to join us. The more, the merrier! Let's gather to share holiday FUN!!

Prepare to tell us about your favorite Christmas present, your favorite holiday song, and your favorite holiday tradition!

Happy Bucks!

Andy Denton was pleased to share her good news --- Her daughter Marcie was released from the hospital following a stem cell transplant. So far, so good! Sending get well wishes to Marcie!!

Don Coughlin was popping buttons again --- his grandson Michael Holland attends Miami University (Oxford OH) and has begun his D-1 hockey career in Omaha NE. Great news!!!

Dick Hall continues to applaud our efforts and contributions to The Rotary Foundation --- more than $11,000 has been donated to date. THANK YOU Rotarians!

Sue Figler was all smiles --- her two daughters finished their semesters at THE Ohio State University in fine fashion --- on campus and NO COVID! The track stars begin their seasons in the Spring. Best wishes for a great season!

Highlights from last week's program:

Brad Jagger was our meeting host. Brad shared a story about his friend Ella, AKA Cinderella. Ella, a VERY positive person (she sees the best in everyone!), purchased six pies at a newer pie shop in Youngstown, owned by her friend. Ella shared two of her pies with Brad. Her act of kindness truly touched his heart (and his stomach!). Hopefully, Brad won’t feel so ‘grinchy’ this year!

Speaker: Frank Fantozzi.

Frank, an investment advisor (not an economist) shared some market facts with our group. Historically, a split Congress has been positive for stock values. In past years, stock values increased an average 13.4% during terms of Republican-controlled Congresses; increases averaged 10.7% during terms of Democrat-controlled Congresses. Statistics since 1950 report average increases of 17.2% for split-party-controlled Congresses. The Georgia senator races are ‘wild cards’. Markets are counting on a Republican Senate.

Frank's General Comments:

Count on more taxes if Democrats control Congress. Low interest rates will continue for the next couple of years; a worldwide matter. Low interest rates will help growth-oriented stocks. COVID put an end to the economic expansion. The value of municipal bonds may suffer for several months. Start with a strategy and populate your investment portfolio to match it. Investment strategy: stock, fixed income investments, and alternative options … think stool with 3 legs.

Timing the market is not recommended for long-term investors. Investors should plan for five years before seeing a rebound for travel and entertainment.

Frank's Employment Comments:

The country/world will see a K-shaped recovery. A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people. The high-wage job market ($60K+) has held up better during COVID-19. Lower wage unemployment is up! These workers are clamoring for additional stimulus money!

Frank's Economic Outlook:

The US government has followed a favorable monetary policy --- lots of stimulus money.

Profitability of companies has improved.

Real GDP growth forecasts: US markets: 4 – 4.5%; Emerging markets: 5 - 5.5%; Global: 4.5 - 5%

Inflation growth: 1.9%

Unemployment: 6.7%

2021 US Market Forecasts: S&P: 3850-3900 vs. 3450-3500 in 2020; 10yr US Treasury: 1.25-1.75% vs 1-1.5% in 2020; S&P 500 earnings per share: $165 vs $133 for 2020.

The 60/40 portfolio --- fixed income is decreased, but stocks will have lots of pressure to perform. Cash is earning VERY little.

Investors are feeling bullish about 2021.

There are expectations of increased corporate earnings. Holding bonds will be risky, compared to other years.

Thank you Frank for your insightful presentation. It always helps to hear opinions of others re: investing!

Hosts --- Please invite your speakers to learn more about Rotary! Carrie, keep up the great work!!

Meeting

Wednesday,

December 16, 2020

7:45 A.M.

Happy Bucks!