Daily COVID-19 Infections, Hospitalizations and Deaths Declining

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COVID-19 Cases Are Dropping Fast. Four reasons: social distancing, seasonality, seroprevalence, and shots.

COVID-19 is in retreat in America. New daily cases have plunged, and hospitalizations are down almost 50 percent in the past month. The reason for the decline range Americans’ good behavior in the past month combined with (mostly) warming weather across the Northern Hemisphere has slowed the pandemic’s growth; at the same time, partial immunity and vaccines have reduced the number of viable bodies that would allow the coronavirus to thrive.

The current decline of COVID-19 is crystal clear.

There has been a five-week downward trend in cases, according to data collected by the Centers for Disease Control and Prevention. The highest 7-day moving average occurred on January 11, 2021 and was 249,048. The current 7-day average is 77,385 cases, which is a 68.9% decline.

Furthermore, the 24.5% decrease in the 7-day average number of daily cases reported compared with the prior week also provides an encouraging sign of recent progress. Even with these declines, however, the 69,165 cases reported on February 17 remains higher than what was seen during either of the first two peaks in the pandemic.

Daily Trends in COVID-19 Cases

The numbers of new hospital admissions of patients with confirmed COVID-19 have decreased from the national peak of 18,006 admissions on January 5, 2021 to 6,841 admissions on February 16 (a 62% decrease). The average number of daily admissions fell by 21.8% compared to the previous week.

Nationally, the number of COVID-19 deaths continue to fluctuate. There has been over 500,000 total COVID-19 deaths reported with 2,601 new deaths reported as of February 23, 2021. The 7-day average number of new deaths decreased by 9% to 2,708** new deaths per day compared to the previous 7-day period.

Why the decline?

Americans’ good behavior in the past month combined with warming weather across the Northern Hemisphere to slow the pandemic’s growth; at the same time, partial immunity and vaccines have reduced the number of viable bodies that allow the coronavirus to thrive.

According to a piece that ran in the Atlantic.:

1. Behavior: Americans finally got on board with wearing a mask and social-distancing thing.

Officials pointed to Google mobility data that demonstrated that Americans withdrew into their homes after the winter holidays and hunkered down during the subsequent spike in cases that grew out of holiday season socializing. New hospital admissions for COVID-19 peaked in the second week of January—another sign that social distancing during the coldest month of the year bent the curve.

2. Seasonality: The coronavirus is perhaps seasonal and destined to decline.

Behavior can’t explain everything regarding the decline. Mask wearing, social distancing, and other virus-mitigating habits and behaviors had some impact. But bottomline, COVID-19 is in retreat across North America and Europe. Since January 1, daily cases are down 70 percent in the United Kingdom, 50 percent in Canada, and 30 percent in Portugal. This raises the possibility that SARS-CoV-2, the virus that causes COVID-19, is seasonal.

Many viruses fare best in cold and dry conditions; they’re not well designed to thrive in warmer, sunnier, and more humid outdoor areas, Harvard epidemiologist Michael Mina told New York magazine. Each virus is a bundle of genes and protein encased in a fatty lipid molecule. This fatty shell breaks down more easily in warmer and more humid environmental conditions.

3. Partial immunity: The virus is running out of bodies to infect

The coronavirus needs bodies in order to survive and replicate, and it now has access to fewer welcome hosts. Fifteen to 30 percent of American adults have already been infected with COVID-19, according to CDC estimates.

America’s seroprevalence—that is, the number of people with coronavirus antibodies from a previous infection—is probably concentrated among people who had little opportunity to avoid the disease.

This is partial immunity among the very populations that have been most likely to contract the disease, perhaps narrowing the path forward for the original SARS-CoV-2.

4. Vaccines: Despite naysayers and a few reluctant family members, the shots work.

The vaccines are highly effective at preventing infection. But preventing infection is not all they do. Among those infected, they also reduce symptomatic illness. And among those with symptoms, they reduce long-term hospitalization and death to something like zero.

It’s simple to show why this period of declining hospitalizations should keep going. Assuming the CDC is correct that about 25 percent of adults have COVID-19 antibodies from a previous infection and add to that number the 10 percent of adults who have received vaccine shots since December, that would mean one-third of adults currently have some sort of protection, either from a previous infection or from a vaccine. Thus, sometime this spring, half of American adults should have some kind of coronavirus protection.

Although the pandemic is far from over, the U.S. has reached the beginning of the end of COVID-19 as a threat to the health-care system and the senior citizen population.

References:

  1. https://www.cdc.gov/coronavirus/2019-ncov/covid-data/covidview/index.html
  2. https://www.theatlantic.com/ideas/archive/2021/02/why-covid-19-cases-are-falling-so-fast/618041/

Overcoming Your 5 Biggest Retirement Challenges | Morgan Stanley Financial Advisor

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While saving for a retirement is an important topic, it’s also important what your plan of action once you enter retirement. No matter how well you save during the accumulation phase, it’s critical to plan how you convert those assets to income.

Other than Social Security, many retirees have no source of guaranteed income other than retirement savings. Plus, unlike previous generations, you may not be covered by a pension plan at work, so chances are you’re going to have to rely on your own efforts to overcome the following five challenges:

Challenge #1: Longevity

According to the Society of Actuaries, a man in his mid-50s today has about a one-in-three chance of reaching age 90, while a woman of the same age has a roughly 50% chance.

What this means is that you may very well spend as many years in retirement as you did during your career. That means generating enough income to meet day-to-day expenses for possibly 30 years or more—an especially daunting challenge in an environment where few sources of guaranteed income are available to you.

Challenge #2: Volatility

Market swings and “Black Swan” events are always a possibility. Black Swan events are best described as 9/11, the real estate bubble that led to the Financial Crisis and the coronavirus pandemic. In short, Black Swan events are those that defy our ability to predict them.

When they occur, they can have a profound impact on financial markets. These days, trading is often conducted electronically at lightning fast speeds among numerous participants around the world. In addition, trading doesn’t stop when the market closes, and the advent of social media has accelerated the speed at which decisions are made. Put it all together and the climate is conducive to greater volatility than we’ve experienced in the past.

Challenge #3: Inflation

Inflation is the rate at which the prices of goods increase on an annual basis. It’s hard to believe, but on January 1, 1981, the U.S. inflation rate was a whopping 13.9%. Fortunately, in recent years it’s been hovering between 0.5% and 2.5%.2 But, even today’s relatively low rate can have a harmful effect on your purchasing power over time.

For example, $1,000 today will only be able to purchase $552 in goods 30 years from now with a 2% annual inflation rate. With a 3% rate, that $1,000 will only buy you $412 worth of goods. And if inflation goes up to 5% or 6%, the results could be far more drastic.

For many retired people, higher inflation is especially difficult because they may be living on a fixed income that can’t support rising costs. In addition, many of the goods and services most often used by retirees are already experiencing greater-than-average price inflation.

Health care costs, for instance, can be particularly onerous. On average, a 65-year-old couple in good health who retired in 2019 with Medicare Parts B and D and supplemental insurance coverage could expect to pay $387,644 for healthcare costs for the remainder of their lives, according to HealthView Services.3

Challenge #4: Taxation

If you’re in a high tax bracket, you have to be especially aware of how your assets are invested. Many hedge funds and mutual fund managers, for example, fail to consider taxes when they’re seeking profits. Portfolio turnover can be high and short-term capital gains, which are taxed as ordinary income, are often generated in abundance.

Mutual funds may also throw off what is sometimes called “phantom income.” These are distributions of dividends and/or capital gains that are reinvested in additional fund shares. You never really see them, but you’re taxed on them anyway. In fact, many investors find themselves paying taxes on capital gains distributions even while their fund shares have declined in value for the year.

Challenge #5: Leaving a Legacy to Loved Ones

For many Americans, even if they have enough income to comfortably meet retirement expenses, leaving a legacy is still a primary concern, particularly as it relates to estate taxes. Federal estate tax alone can reduce the bequest you hope to leave someday. Depending on which state you live in, erosion can be even more profound.

What to Do in Retirement

Years ago, once in retirement, an oft-used strategy was to reallocate your portfolio from predominantly equities to predominantly fixed income and to live on the interest generated by these holdings. With today’s interest rates near record lows and life expectancies expanding, this strategy may no longer be viable.

Consider How You’ll Pay for Care

Nobody wants to think about having to rely on others for care, but it’s essential to plan ahead for such a possibility, especially for later in life. The cost of long-term care services—whether provided in the home, at a community facility or in a nursing home—may not be covered under major medical plans or Medicare and often exceeds what the average person can pay from income and other sources, particularly in retirement. One alternative to paying entirely out of your own pocket is long-term care insurance.

References:

  1. https://www.morganstanley.com/articles/retirement-challenges?cid=smsp-23846713277230660_2940782372618971_23847035077960660_23847056332980660

When Markets Dip, Don’t Drop Out

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“Just stay the course. Don’t do something, just stand there. This is speculation that we’re seeing out there, and you can’t respond to it.” Jack Bogle, Vanguard Investment

When the market gets jumpy, so do many investors.

In periods of volatility, anxious stock market investors can be tempted to take money off the table, fearing a potentially major slide in their portfolio. Selling off stocks when the market dips and returning only when things calm down is emotional, not rational or successful investing strategy. Data has proven that over the long term investors are always able to overcome dips and recessions successfully.

Markets tend to overshoot in both directions,” the late financier Leon Levy wrote in his memoir, The Mind of Wall Street. “Just as we saw stock prices rise far above the value of the companies, we are likely to see the reverse. Stocks will then be undervalued, and there will be new opportunities for investors.”

“During the last 20 years alone, there have been 25 months (i.e. more than every tenth month) where the S&P 500 index dropped by more than 5% in a month, with the decline averaging -7.9% among those 25 months. Despite this, over this time period the annualized compound growth rate on the index has been +6.3% per year. “ Jakub Jurek, Wealthfront Advisers’ VP of Research explains.

The Charles Schwab infographic explains how staying the course during market dips can be healthier for an investor’s portfolio.

It considers three types of investors over the course of 40 years:

  • The Stalwart – a discipline investor who sits tight and continues to invest, no matter how the market is performing.
  • The Reactor – an investor who reacts and pulls his money out of a bear market. He continues to save 10 – 15 percent of his income in hopes recouping some of his losses, but didn’t invest it.
  • The Waffler – during a year with negative returns, a waffling investor will move all his money out of the market and will sit on the sideline in cash. And, if the market rises up after a few years, he would finally get back into the market.

“If you take money out of your accounts in anticipation over a market downturn, it’s hard to know when you should put your money back in,” says Celine Sun, Wealthfront’s Director of Research. “This means that most likely, you’ll miss the upside returns more than you’ll avoid the downside.” Exiting stocks amid a turbulent market may help assuage your anxiety, but you’re likely to miss out on substantial gains while you sit on the sidelines.

Stay the course

“Stay the course” is a phrase that means to continue with your current investment plan. Investing should be for the long term. The stock market will always have turbulence, so it’s important that you ride out market cycles. If you are invested in high quality equities and your investments are based on a solid financial plan, don’t sell anything that you wouldn’t sell when there isn’t crashing. The only exception is when it’s clear that a company or niche industry isn’t going to recover, and then it may be time to cut your losses.

“In the short run, listen to the economy; don’t listen to the stock market,” Vanguard Group founder Jack Bogle said during an interview in the midst of a rather severe market turmoil. “These moves in the market are like a tale told by an idiot: full of sound and fury, signalling nothing.”

Whether the market recovers quickly or years from now, the most important thing to remember is, it will recover. And so will you. According to Carlos Slim Helu, “Courage taught me no matter how bad a crisis gets … any sound investment will eventually pay off.”

References:

  1. https://www.schwab.com/resource-center/insights/sites/g/files/eyrktu156/files/Q120_When_Markets_Dip_fina%401x_72dpi_0.jpg
  2. https://blog.wealthfront.com/what-should-you-do-when-markets-dip-hint-nothing/
  3. https://www.marketplace.org/2009/01/05/history-rewards-stalwart-investor/
  4. https://www.forbes.com/sites/lizfrazierpeck/2020/03/12/three-things-to-do-during-a-stock-market-crash/?sh=185db9a54c78

Note: Investors simply don’t experience FOMO (Fear of Missing Out) as much as they experience FOLO (fear of losing out). Consequently, the fear of losing lingers far beyond the crisis period and investors are left worse off than if they had done nothing at all. For those investors who sold during a market crash, it is important that they get back into the market and not engage in the destructive speculation.

COVID-19 Cases Have Dropped 77% in Six Weeks

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“COVID cases have dropped 77% in six weeks. Experts should level with the public about the good news.”  Dr. Marty Makary, surgeon and professor at the Johns Hopkins School of Medicine and Bloomberg School of Public Health

Dr. Anthony Fauci, White House COVID adviser, reassured Americans that the millions of coronavirus vaccine doses delayed by winter storms in the Northeast and Texas would be delivered this week as the nation approaches the half million mark for deaths due to Covid-19.

Despite the delays in vaccine delivery, there are signs the pandemic has eased in the U.S. in recent weeks. The 7-day average for daily deaths has fallen more than a third since mid-January, while new infections are down nearly 70% since then, according to data from the New York Times. Additionally, according to data from John Hopkins University more than 498,900 people have died of COVID-19 as of Monday morning. Globally, 2.4 million people have passed due to the virus.

Dr. Marty Makary, a surgeon and a professor at the Johns Hopkins School of Medicine and Bloomberg School of Public Health, believes that the coronavirus will be “mostly gone” and ” normal life will return” by April 2021.  In an op-ed published by The Wall Street Journal, Dr. Makary argued that half of the U.S. has already reached herd immunity because there are more coronavirus cases in the country, possibly 6.5 times as many, than the 28 million that have been reported.

“There is reason to think the country is racing toward an extremely low level of infection,” Makary wrote. “As more people have been infected, most of whom have mild or no symptoms, there are fewer Americans left to be infected. At the current trajectory, I expect COVID will be mostly gone by April, allowing Americans to resume normal life.”

Dr. Makary cites observational data which shows that the majority of Americans may already be protected not only from COVID-19 but also its new variants.  He states, “My prediction that Covid-19 will be mostly gone by April is based on laboratory data, mathematical data, published literature and conversations with experts.”

“But the consistent and rapid decline in daily cases since Jan. 8 can be explained only by natural immunity,” Makary wrote. “Behavior didn’t suddenly improve over the holidays; Americans traveled more over Christmas than they had since March. Vaccines also don’t explain the steep decline in January. Vaccination rates were low and they take weeks to kick in.”

Even with daily new infections falling below 70,000 on a 7-day rolling average, the Centers for Disease Control and Prevention has warned that more contagious variants could cause those numbers to rise again.

References:

  1. https://www.newsweek.com/john-hopkins-doctor-thinks-covid-will-largely-gone-april-half-us-has-herd-immunity-1570615
  2. https://www.wsj.com/articles/well-have-herd-immunity-by-april-11613669731
  3. https://meaww.com/dr-marty-makary-johns-hopkins-surgeon-professor-claims-us-covid-mostly-gone-april-us-herd-immunity
  4. https://www.ftportfolios.com/common/contentfileloader.aspx?contentguid=2a5d4dcf-5eda-4310-8d23-af162f8fb7e9

Jeremy Siegel: Stimulus Guarantees Economic Boom in 2021

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President Biden’s proposed $1.9 Trillion stimulus package will help move the economy forward, according to Jeremy Siegel, the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania and a senior investment strategy advisor to Wisdom Tree Funds.

As a result of the fiscal stimulus and the continued rollout of the COVID-19 vaccine, Siegel remains bullish on the U.S. economy and expects equities and inflation to rise in 2021. Additionally, he believes inflation rate will run well above the Federal Reserve’s 2 percent target rate and will do so for several years which he opined “is not good for bondholders”. In his opinion, U.S. Treasury bondholder, because of rising inflation and bonds rates, will be paying for the unprecedented President’s fiscal and Federal Reserve’s monetary stimulus.

Investors should avoid bonds

Bottomline, he believes interest rates are heading “higher in 2021 and, as a result, bonds are not a good place for investors to put their money”.

References:

  1. https://www.ft.com/content/6536113f-f509-41e2-bee0-597ed90843b6
  2. http://searchbeat.com/whartons-jeremy-siegel-investors-should-avoid-bonds/business/

Defining the Problem

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“If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and five minutes thinking about solutions.” Albert Einstein

This enlightened quotation by Albert Einstein points to the reason for the failings of many modern innovation and solutions. “Twenty-five percent of failures were due to people trying to solve the wrong problems,” says inventor Darrell Mann, CTO of consulting agency Blackswan, former chief engineer at Rolls-Royce, where he studied innovation duds and dynamos for 15 years.

What organizations struggle with is not solving problems but figuring out what the true problems are they’re trying to solve. Essentially, individuals and organizations are bad at problem diagnosis. Spurred by a penchant for action, corporate and organization executives tend to switch quickly into problem solving mode without checking whether they really understand the problem.

Well-defined problems lead to well aligned and breakthrough solutions. Most companies and organizations aren’t sufficiently rigorous in defining the problems they’re attempting to solve and articulating why those issues are important. Without that rigor, organizations miss opportunities, waste resources, and end up pursuing innovation initiatives that aren’t aligned with their strategies or mission.

Many companies and organizations need to become better at devoting the time and resources to ask the right questions so that they can define and tackle the right problems.

References:

  1. https://www.inc.com/thebuildnetwork/you-cannot-solve-what-you-dont-understand.html
  2. https://hbr.org/2017/01/are-you-solving-the-right-problems?ab=at_art_art_1x1
  3. https://hbr.org/2012/09/the-power-of-defining-the-prob

Never invest in something you don’t understand.

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Many successful investors follow one extremely important rule of thumb: Never invest in something you don’t understand.

Selecting the right companies to invest is very difficult and the decision shouldn’t be taken lightly. When you invest in the stock market, you will be tempted often to buy companies or products that you don’t truly understand.

Consequently, if you can’t understand the investment and understand how it will help you save for the future, build wealth over the long term or achieve your financial goals, do not buy the asset. You need to resist temptation, and focus on the only question that counts:

“Do I understand the business of this company well enough so that I am reasonably confident that it is going to be a good investment?”.

Warren Buffett famously said he has three boxes for investment ideas: in, out and too hard. If a company’s business or product is too difficult to understand, it’s better to just file it in the “too hard” category and move on to another opportunity.

Investors should always remember that a share of stock represents partial ownership of a company. “Just as you would never purchase a private business from someone else without at least looking at its sales, profits, debt and trends of all three of those things at a bare minimum, you need to do the same thing before purchasing stock in a company,” Cornerstone Wealth chief investment officer Chris Zaccarelli says. “If you are doing anything else, you are just hoping what you bought will go higher – and hope is never a good strategy.”

Be sure to always read an investment asset’s prospectus or disclosure statement carefully. And, if you are still confused, you should think twice about investing.

The bottom line for investors is simple: If you don’t completely understand how an investment works, or creates revenue, earnings and cash flow, then don’t buy it.

References:

  1. http://www.mymoneyworks.de/back-to-basics/dont-buy-what-you-dont-understand/
  2. https://money.usnews.com/investing/articles/2017-05-11/never-invest-in-something-you-dont-understand

Bill Gates: Avoiding a Climate Disaster

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“Do what you can to help keep the planet livable for generations to come.”  Bill Gates

With a new book ‘How to Avoid a Climate Disaster,’ Bill Gates is obsessed with developing clean technology and innovative solutions to combat climate change through his philanthropic work and alongside cadre of billionaire partners.  Additionally, in his new book, he proposes an action plan based on employing technology, innovation and global cooperation to tackle climate change and for ending the world’s carbon dependency.

Gates argues that “world leaders need to shift their focus to long-term strategies aimed at creating a zero-carbon future, a task that scientists warn must be accomplished in a handful of decades to head off catastrophic changes.”

For 20 years, Gates has been studying the twin global afflictions of disease and poverty. These efforts led him to consider climate change and its vexing impact on civilization.  Gates, who is 65, has already confronted intractable problems, like trying to eradicate polio. The co-founder of Microsoft also sounded the alarm early about the need to prepare for a global pandemic. Climate change is yet another challenge Gates used his bully pulpit to sound the alarm.

Bill Gates Has a Master Plan for Battling Climate Change

Bill Gates has confidence in the world’s collective ability to avoid the earth’s descent into a landscape of scorched rainforests and liquefying glaciers, yet his proposed prescription is daunting.  Gates is worried that people will get sick of hearing from him sounding the alarm on the perils of climate change as he flies around the globe in his private jet trying to save the planet.

“This is, you know, a harder problem than ending the pandemic or getting rid of malaria,” Bill Gates says of tackling climate change. But “lots of idealistic people [are] pushing the cause forward.”

“I’ve learned from my work at Microsoft and in philanthropy that the best way to encourage others to take action is to start by doing it yourself’, Gates said. “President Biden has already taken an important first step by rejoining the Paris climate accord. Now the United States can build on that step by adopting a concrete plan that checks several boxes at once: eliminating emissions while adapting to the warming that is already happening, spurring innovative industries, creating jobs for the post-pandemic recovery, and ensuring that everyone benefits from the transition to a green economy.”

In the 15 years that Gates has been learning about and investing in clean energy, he states that he has “benefited from many discussions with scientists, policy experts, and elected leaders from across the political spectrum, in the United States and around the world”.

Drawing on those conversations, he proposes four actions that America and other countries can take to advance their leadership on climate change this year and put the world on a path to zero emissions by 2050:

1.  Increase the supply of innovation.

We need breakthroughs in the way we generate and store clean electricity, grow food, make things, move around, and heat and cool our buildings, so we can do all these things without adding more greenhouse gases to the atmosphere. We have some of the tools we need, like solar and wind power, but far from all of them. And we won’t develop new tools without a dramatic infusion of investment and focus from the federal government.

2.  Increase the demand for innovation.

“I learned the hard way at Microsoft that simply making a great product doesn’t guarantee that you will beat the competition”, Gates explained. “Sometimes there’s just not enough demand for what you’re selling.”

The lesson for climate change is that the world can’t avoid a climate disaster through technological innovation alone. We need policy innovations to make sure that scientists’ breakthroughs make it from the lab to the market, and that they’re affordable enough for developing countries as well as rich ones.

That means doing things like setting standards for how much electricity or fuel must come from zero-carbon options. Governments can also use their procurement power to create demand for cleaner options—for example, buying only electric buses, as the city of Shenzhen, China has done. They can build the infrastructure that allows for green options: charging stations for electric vehicles, or new transmission lines to deliver clean energy from the places where it’s generated to the places where it’s consumed.

Finally, governments can level the playing field so it’s easier for clean alternatives to compete on price.

The idea isn’t to punish people for their greenhouse gases. It’s to create incentives for inventors to create competitive carbon-free alternatives and for consumers to buy them.

3.  Work globally.

Climate change is the definition of a global issue. Temperatures won’t stop going up in Texas unless emissions stop going up in India.

That is why governments need to work together to develop common goals, share knowledge, and make sure that clean technologies developed in one country will spread quickly to others. This cooperation can happen on a bilateral basis—between two countries talking directly to each other—as well as among many governments through venues like the United Nations.

4.  Prepare for a warming world.

“We’re already seeing the impact of climate change”, Gates announced. “So even as we develop and deploy ways to prevent future warming, we also need to adapt to the effects that higher temperatures are having around the world.”

Countries will need to invest in climate-proofing infrastructure to cope with more severe weather and rising sea levels. This includes upgrading electrical grids, expanding storm water drainage systems, and building or expanding seawalls. And two of the best ways for wealthy countries to help low- and middle-income ones is to invest in primary health care and make sure smallholder farmers can grow enough food to feed everyone.

References:

  1. https://www.wsj.com/articles/bill-gates-interview-climate-change-book-11613173337?tesla=y&mod=e2twmag
  2. https://www.politico.com/news/2021/02/15/bill-gates-climate-change-468928
  3. https://www.gatesnotes.com/Energy/4-ways-the-US-can-reassert-leadership-on-climate-change
  4. https://www.gatesnotes.com/Energy/How-to-Avoid-a-Climate-Disaster-announcement

Buying Homes During Covid

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People Rushed to Buy Homes During COVID-19. Now, They Regret It.

The hot real-estate markets across the U.S. led to a number of buyers to purchase homes without performing due diligence

A cardinal rule of home buying is that you shouldn’t rush into a purchase of a home. But in 2020 and now in early 2021, millions of Americans did and are doing just that…rush into purchasing a home, occasionally sight unseen or without a thorough home inspection.

Fleeing small apartments, buying vacation homes or simply looking for a change of scenery amid the crushing boredom of lockdowns, people scrambled to buy houses amid the pandemic, spurring bidding wars and supercharging real-estate markets across the country, according to Candance Taylor*, reporter with the WSJ. Now, many are discovering the pitfalls of these hasty purchases, ranging from buyers’ remorse and financial strain to damage caused by unexpected problems.

At the same time, inventory dropped as many homeowners hesitated to list their properties in the pandemic.  The pandemic has aggravated the housing market’s longstanding lack of supply, creating a historic shortage of homes for sale. The shortage has pushed home prices higher, stretching the budgets of many middle-class and first-time home buyers. The median existing-home price crossed above $300,000 for the first time ever in July, up 8.5% from a year earlier, according to NAR.

The result is that much of the country saw a price spike and bidding wars, brokers said, leaving buyers with little to choose from. In these conditions, many are tempted to waive inspections or skip other due diligence they would normally perform before buying a home.

Over the past two years, the insurance company Chubb has seen large, non-weather-related losses increase in frequency and severity, according to Fran O’Brien, division president of Chubb North America Personal Risk Services. She attributed these losses in part to hasty home purchases: Buyers moving from a small city apartment to a large home in a rural area may not be well versed in how to prevent the pipes from freezing, for example.

“People are moving to places that they don’t know a lot about,” Ms. O’Brien said. “They’re thinking, ‘this looks like a nice place to live’ for amenities it may have. They don’t understand what risk there could be with that home.”

People are even more likely to overlook those risks, she said, when they are in a hurry to snap up a home before someone else does. “You run into this lack of awareness and lack of time, which is not a good combination.”

A HomeAdvisor report found that Americans did an average of 1.2 emergency home repairs in 2020, up from 0.4 in 2019, while emergency home spending jumped to an average of $1,640, up $124 from the 2019 average.

References:

  1. https://www.wsj.com/articles/these-people-rushed-to-buy-homes-during-covid-now-they-regret-it-11613062856
  2. https://www.wsj.com/articles/americans-want-homes-but-there-have-rarely-been-fewer-for-sale-11600680612?mod=article_inline

* Candace Taylor, Real Estate Reporter and Editor at The Wall Street Journal

What Every Woman Needs To Know About Her Money

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“The lion’s share of wealth, two-thirds of wealth in the United States, is going to end up in the hands of women by the year 2030.” Jean Chatzky

The women that Jean Chatzky, New York Times Bestselling Author and financial editor at the NBC TODAY Show, has talked with “share a lack of confidence” regarding managing and investing their money. “Whether we’ve got one hundred, one hundred thousand, or one million dollars, we don’t always feel equipped to manage it, even when we’re doing exactly the right things,” she explained.

In order to create a better world, Chatzky suggests women should, “…use this power that’s coming our way to improve not just our lives, but the lives of the people that we love and care about, and the causes that  we believe in. We really do have an opportunity through giving and investing to create the world we want.”

Women…”have an opportunity through giving and investing to create the world we want.” Jean Chatzky

Chatzky offers 15 tips to help you get a handle on your finances and to create the financial future you want for yourself.  A future that aligns with your goals, values and purpose in life.

1. Talk openly about money

Chatzky explains, “We gather groups of women who don’t make a habit of talking about money with the specific purpose of talking about money…and it’s really freeing.” One open ended question she asks is, “What do you want your money to do for you?”.

2. Track your spending to see what you really value

Do you want a clear picture of your spending? More so, do you want to uncover whether or not what you say are priorities are aligned with your expenditures?

3. Determine what your ideal life actually costs

“What do you want from your life?” This is a question Chatzky believe you need to consider so that you can determine what your ideal life actually costs. Write down what you want and next to each item, list the price to do or have it.

4. Use money as a resource to buy you more time

Money is a tool which creates freedom of time and choice. Chatzy shares, “The most important thing to realize is the opportunity that you’re wasting. Money we can get more of. Time, you absolutely can’t get more of…But by moving around some of our money, we can restructure our time in a way that feels much better, much more fulfilling, and much less stressful. We are so stressed, and using our money to swap for a little bit of extra time is one great way to reduce some of that stress.”

5. Identify your money scripts

“We all have stories around money which became ingrained as children. In some cases we mimic them, in others we rebel against them. In order to know where you’re going with your financial future, it’s helpful to identify the scripts that are overtly or subliminally impacting your views and habits around money,” advises Chatzky.

6. Find financial harmony in your primary relationship

Chatzy suggests, “Listening is the key to success within a relationship. You have to understand why your partner needs what they need as much as they need to understand what you need.”

7. Don’t let money injure your friendships

“Listen and read between the lines. We know an awful lot about our friends’ financial situations, even if they tell us not one thing. We see how they spend. We see how they manage. We know if they’re stressed financially. We just have to be a little bit empathetic and open-minded about the fact that they may not have the same choices or priorities that we have. And that doesn’t mean that we can’t be great friends,” shares Chatzky.

8. Teach your kids early

It can feel scary to talk to your kids about money, especially if you feel tentative about your own financial skills. Fortunately, it doesn’t have to be challenging: “Kids have to have money in order to learn to manage money.”

9. Get paid what you deserve

To charge or get paid what you deserve, “First, you must know what you deserve and once you know what that number is, you have to ask for it:

10. Negotiating won’t hurt your outcomes

The person on the other side of the table, they are waiting for you to negotiate, according to Chatzky. They’re not going to punish you for negotiating. You may not get the money. But asking is not going to hurt you.

11. To be or not to be (an entrepreneur)

30% of US businesses are women-owned, and that number is rising steadily.

12. Spend on others

Studies show that when you do for others, you’re guaranteed to feel happier. This includes when you spend on others. “There’s no sense in feeling guilty for spending money that’s not sabotaging our financial life”, says Chatzky.

13. Talk with aging parents

“If you haven’t had a conversation with your parents before you’ve hit age forty or they hit age seventy, it’s time”, she comments

14. Have a little fun with your money

Chatzky comes from a judgment-free zone when it comes to how you spend your money. But, “know how much it costs” since you earned that money and yours to do with as you want.

15. Consider your legacy

“You have to think about what’s important to you. That’s where a lot of us fall down when it comes to charitable giving”, Chatzky says.

Building wealth

If you want to build wealth, you need only do four things, according to Chatzky:

  1. Make a decent living.
  2. Spend less than you make.
  3. Invest the money you donʼt spend.
  4. Protect the financial world you build so that a disaster doesnʼt take it all away from you.

Building wealth sounds easy, so why is it so hard, particularly for women?  “Because women according to Chatzky, “make excuses”. We tell ourselves that we’re “just not good with money,” or that our husbands “like taking care of the finances.”

In short, “what successful women want from their money are: independence, security, choices, a better world, and–oh yes–way less stress, not just for themselves but for their kids, partners, parents, and friends.”

To read more: https://www.vunela.com/jean-chatzky-on-the-top-15-things-every-woman-needs-to-know-about-her-money/

References:

  1. https://www.vunela.com/jean-chatzky-on-the-top-15-things-every-woman-needs-to-know-about-her-money/
  2. https://www.jeanchatzky.com/books/