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Coronavirus Update: May 14, 2021 [Video]

Written by Brad McMillan, CFA®, CFP® | May 14, 2021 5:12:10 PM

Given how much things have improved, I’ll be taking this video to a monthly schedule, on the second Friday of the month—I’ll see you then.

Today, I'd like to provide an update on the coronavirus, including the economic and market implications. The news continues to get better on the medical front, with case growth and hospitalizations now at the lowest level since last fall, before the third wave. Further, more than one-third of people in the U.S. are fully vaccinated, and almost half have had at least one shot. Still, overall vaccination rates have slowed recently, and an emerging concern is whether we’ll get to herd immunity. That risk will be something to watch in the weeks ahead.

Turning to the economy, the news keeps getting better. Confidence and spending are on the rise, layoffs continue to decline, and wage growth is up. One big negative surprise, however, was the sharp drop in job growth. While this is something to keep an eye on, the shortfall looks likely to be a statistical quirk.

As for the markets, despite some recent turbulence on a higher-than-expected inflation report, the Dow and the S&P 500 remain close to their highs. Earnings season is underway, and companies continue to make much more money than expected. So, will things keep getting better from here? Watch my latest video to learn more.