Today, Mak & G look at Biden’s $1.9 trillion plan, how vaccinations are stimulating the market, and how companies are coping…
With the vaccine rollout starting and businesses opening back up there’s been a lot happening in the market recently.
We take a look at how the markets have been moving, the increase in retail sales, and the boom in the real estate market.
In this episode, we also talk about Biden’s $1.9 trillion plan, what it contains, and why he’s dedicating so much money towards it…
“In a quarter of a year, Carnival had more bookings than in the first half of 2019, that’s crazy.” – Mak
“Half of entrepreneurs think that they can make it through the year, the other half don’t think they can make it through.” – G
01:00 – How COVID vaccinations are affecting businesses.
01:46 – Our weekly market updates.
04:24 – What Bitcoin is and how the value of it has been increasing.
05:20 – The difficulty dad is having with day trading recently.
06:43 – Biden’s $1.9 trillion stimulus package and what it contains.
09:39 – How COVID has increased the costs for schools and universities.
12:30 – Herd immunity, the vaccine, and returning to normalcy.
15:15 – The increase in retail sales and the boom in the housing market.
18:25 – The return of holidays and cruise lines.
22:29 – ‘Beach stocks’ and the return of airlines.
25:12 – How many companies have failed over the last year.
Connect with Ben Jones:
DAD: Hello, welcome back to Money with Mak and G. Today we’re going to talk a little bit about the markets. Joe Biden’s $1.9 trillion plan that he has out there, as well as some of the items related to vaccinations and some of the beach ducks. So welcome, guys, how you doing today?
MAK: Hi, how are you
DAD: You guys doing pretty good. Is it feeling like the sun’s coming out from behind the clouds?
MAK: I am so sad because there’s so many vaccinations and…
GRANT: Oh, well, and springs on its way. So everyone’s happy for that.
DAD: Right. And then we’ve got Easter, it’s really not far around the corner. And this upcoming week is you guys know, but the look at the Irish.
GRANT: Oh, St. Patrick’s Day.
DAD: St. Patrick’s Day. So there’s a lot of stuff that’s going on overall. And like you got I said, you said the sun’s coming out. And I’m feeling it too. And why do you feel that a little bit?
MAK: Because, well, for me, at least it’s because there’s COVID vaccinations and like a lot of people that I’m talking to they’re saying like their parents have gotten it so stupid
DAD: On the vaccination.
DAD: Yeah. All right.
GRANT: People are overall just like better hotels, airlines are opening up everything just like getting better.
DAD: Absolutely. And it’s pretty, it’s pretty crazy for me, because the average age that I’m seeing in the restaurants is about 65. Now, why do you guys think that would be?
GRANT: Because everyone’s getting their COVID vaccination. So then they’re like, Yeah, let’s go to your stuff.
DAD: Absolutely. That’s absolutely what’s happening. So why don’t we jump into the markets a little bit? Can you guys tell me what happened this week, and make sure that you give our audience a little bit of understanding of what some of our market indicators are about? So what do you think Mak, you pick one?
MAK: I’m going to do Dow. So as we know, the Dow is the top 30 Blue Chips are like big companies. So right now it’s doing the best for the entire year. So it’s basically it’s doing really good.
DAD: In that kind of crazy because what do we talk about? We usually think that the stocks that are going to be doing the best or which one’s the kind of see the most variability in.
MAK: The tech companies which NASDAQ.
DAD: Right we normally see that and we’re seeing that year to date for the Dow we’re seeing the year to date is looking pretty strong. What number is that? About up 7%?
MAK: Oh, yeah.
DAD: So the Dow was doing the best what what are we looking at for the second best thing? That’s a little explanation, a little color on that G.
GRANT: Okay, so the s&p 500 is just 500 companies scattered around. And right now, last week is up by two and a half percent and from your day it’s about up 5%.
DAD: So we got the Dow has been number one s&p Number two and oh my goodness, what’s number three.
DAD: And what’s happening with their Can you give us a little bit of insight MaKenna both on the NASDAQ and Andrew Apple stock. Taking a big breath, right, you’re like to talk about this.
MAK: Rip apples all I can say so Apple. It’s not it’s not going well, guys. I’m sorry. I’m sorry to disappoint you. But it’s not it’s not going well, it’s not going well. Apple literally from a year today has an 8.7 about a 9% decrease. That’s not good at all.
DAD: Especially when you got the Dow up seven. You’ve got 5% on s&p 500 and then the NASDAQ what’s the NASDAQ doing Mak?
MAK: Oh the NASDAQ from here today it’s doing pretty medium mount I guess. It’s about 4%.
DAD: Yeah, a little less than 4% right three and change and so it’s not what we expected because it was a terror and if you look at some of those numbers, I saw the NASDAQ was up almost 10% at one point or a little bit over what 9% And it came tumbling down so we’re thinking maybe there’s a correction that’s out there and then we see the Dow actually taking over what what has been the big news like what is really crushed like didn’t really well this year.
GRANT: So the Bitcoin the Bitcoin not just a Bitcoin, a Bitcoin the Bitcoin. So as most of you know, from the last episode, it’s a currency just made out of thin air, and it’s like a wallet so like that, that has been like booming like the whole, like economy and stocks and stuff. And so right now, um, it’s a year to date is 100%.
DAD: It’s pushing 100% and you can save it in the wallet like you just talked about. So bitcoins coming out of the out of no Where and so the regular markets aren’t anywhere to be found? And do you guys want to tell me about the thing I’m really sad about?
MAK: So basically, my dad and Kyle, as you probably know, from our previous episodes, they are doing day trading right now. And the past, like, especially like three, four weeks have been very, very bad. So first, it went down 9%, then it went down 20%. And then it went down another 20%. That is terrible.
DAD: I know.
GRANT: I mean, kind of good for us, because we’re kind of wanting to bet or well.
DAD: You’re down, we’re up. So our day trading is day trading. Really non risk very.
MAK: It’s very, very risky.
DAD: We don’t want to put all our eggs in one basket. But we are still up by about 16% butcher. Right. And again, over the last three weeks, we have been hammered. We have been hammered.
DAD: And we do want to talk about what’s going to be affecting the markets. But that’s our overall market update. We had some really good stuff the day trading at trust crest, Apple down 9%, year to date and shows. What does it show the market? We’ve talked about this?
MAK: Up and Down?
DAD: Yes. Markets go up and down.
GRANT: But like how the money’s moving around and how everything’s doing?
DAD: Absolutely. But we do know that markets go up and down. And so it’s a really big thing. And what’s the big news from last week? And can you give me a little bit about what happened this past Thursday.
GRANT: Okay, so Biden, he’s sending out more money to everyone.
DAD: Which version is this? You remember? Version 3.0.
GRANT: Oh oh, 3.0.
DAD: Like the stimulus. That the amount of stimulus this the third time we’re doing the stimulus?
GRANT: And what what he’s doing now he signed a plan for $1.9 trillion to get everyone more stimulus checks. So 1400 Each so 1400 for each adult and child, and this weekend?
DAD: That’s a lot bigger than what we’ve seen before. Yes. And is it is it important for Biden to do something in his first 100 days in the office, because he sets what we call the tone of what’s going to happen, that he can get things done. And how far into his first 100 days as you guys remember what that one was 50 is day. 50 is day. So he’s setting the tone, he’s 50 days in $1.9 trillion. And it doesn’t only cover, it doesn’t only cover the $1,400 payments. Do you guys remember some of the other things that is in that big package of $1.9 trillion? MaKenna? Let’s give us give us some other things.
MAK: Okay, so in that big package, we so basically, I do like that inflation.
DAD: Once you start with the the first thing that we had listed there, which were the unemployment, what happened with unemployment.
MAK: Okay, so basically people who are being who are unemployed are getting about $300 a week,
DAD: They’re getting 300 hours extra extra a week. And so that’s part of the $1.9 trillion. Right? And it’s extended out until September. Right. And so they’re trying to also get additional money in people’s hands through this other thing that we know is, which is what? Child Tax Credit.
MAK: Oh, yeah.
DAD: Right. We’ve got them all listed out there. So you can cheat a little bit. It’s okay. So go ahead and read the next one, what’s the other one, because we want to, we want to go over some of the things that he’s doing, because this will stimulate the economy, and it will stimulate other things happening. So
GRANT: There’s free money for like, like, if you have children, you can get tax credit. And that’s basically like, money for because like you have to pay like for food for your children and like tax on like everything. And so, like 2000 to three. So 2000 to $3,600 for kids, is what he’s thinking. And it’s gonna also help like health insurance, school, college businesses, COVID testing, and helping the low income.
DAD: So some of those things that he’s really working on. Do you remember some of the items that we talked about? Does he want the schools open Makenna?
MAK: Yes, he does. Because that helps the economy in different ways. It also helps us moving past COVID Alba although, although it can be very risky. If you had to put some laws, not laws
DAD: But you’re gonna need some procedures in place and so he wants to get some money into the schools here. comes right? Because is it usually more costly now with COVID?
MAK: Much more cost? Because you have to pay for like computers if you want. If you’re online, or you have to pay for masks, you have to pay probably more for the team to the teachers, there’s gonna be harder.
DAD: If they don’t have enough gear, you’re right. So there’s just a lot of money that they’re trying to get in their hands. And did the universities shut down too?
GRANT: And so giving them some money to get them restarted to? What could you imagine they would need for the universities?
MAK: Yeah, like, computers are going to need like to help, like, start getting all those supplies back. You know?
DAD: Well, for the universities to get them back opening, you know, they probably have to implement some rules in order to keep people safe. And they’re probably going to have to institute just just different things that the universities are going to need some money to kind of get back on their feet.
DAD: And so he, he’s helping colleges, schools, any other additional business stuff?
MAK: Ah, well, he’s bait. So for the businesses, he’s putting money towards helping the businesses.
DAD: I think he’s doing some loan, doing probably some loan forgiveness, because we call that payroll protection plan the PPP. Do you ever? Yeah, you gotta go pee three times. Right. But the PPP, he’s doing that a second time. And so that gets money into their hands to keep going and to protect payroll and who are who are who’s on the payroll? The employees, right?
DAD: Yeah. So he’s moving through there, and really trying to get money back into their hands. And he’s also doing some COVID testing and helping low income once you help him. Some of the low income people with.
MAK: He’s helping them with like housing.
DAD: The rent, yes.
MAK: The rent, food, water just
DAD: I think utilities. Right? So electricity, probably water some of the other items. So the question is, when do you do a stimulus stimulus package when things are good? Or when things are bad?
MAK: When things are bad? Yeah.
DAD: Man, Grant, do you think things are completely bad?
GRANT: I mean, they’re not completely bad, but they’re still not as good.
DAD: Right? And what do we see about jobs? Because if people have jobs, they’re probably more willing to spend money. So what are we seeing the last five weeks?
GRANT: Um, so like, they’re buying her stuff.
MAK: I’m talking about just the jobs, what are we seeing in the job market?
GRANT: So like, five straight weeks, they’ve been in like improving, and they’re starting faster. So more people are getting jobs?
GRANT: Yeah, it’s overall just helping the economy.
DAD: And so what do you think’s really helping some of the things that’s helping that because we need people out and doing things and some people are getting out and doing things? And I made a joke that the over 60 average right now, why are people getting out and doing things?
MAK: Oh, a lot of it of it is because they’re bored.
DAD: And oh, no, remember? What why?
MAK: Oh, vaccinate, vaccinate, now and since they have the vaccination, and they were really bored during like, COVID Because it can go anywhere. Yeah, go there started go to like, everywhere.
DAD: It was like, here was actually an article somebody was telling me about the New York Times at about a 70 year old lady, who they did her day and her day was going to get her nails done, or hair done, going to the grocery store. And they thought that was such a big thing, because stuff is starting to get back to normal. And how many vaccinations are we putting out a day now?
MAK: Ah, wasn’t it like, six?
DAD: 2 million a day? Oh, yeah, they’re doing about 2 million a day. And we need to get to how many a day?
GRANT: At least 3 million?
DAD: Exactly right, we need to get to 3 million a day.
GRANT: It’s like now there’s 60,000 new cases every day. And we need to like stop that.
DAD: Exactly. So that’s in the US and how many people are passing away from COVID still.
GRANT: 1500 deaths per day and the herd immunity is 50 to 90% of the population of the US.
DAD: And so what is herd immunity? Do you remember what that is Mak?
MAK: Herd immunity is basically like and well for talking about us is how many people are immune to this virus?
DAD: Exactly. And so if you don’t have very many people who’ve had the vaccination and aren’t really immune, then that means Can you pass it around easily if there are very few people that are immune, you can pass it around a lot. If very few people have the vaccination. It just keeps jumping and jumping and jumping.
MAK: But if everyone has a vaccination, and there’s like only two people in the world that could get COVID.
DAD: It has nowhere to go. Exactly right. And so for the herd immunity, I think we were reading grant, what was the percentage that you just said?
GRANT: 50 to 90% of the poverty.
DAD: Right And I think they’re thinking is probably more towards the 75 to 90%. So we really need some help with that. And I know we’re getting about 2 million vaccinations, we need to get up to 3 million. But what are some other things that are happening in the economy? Retail sales Mak, do you remember what was going on with retail sales?
MAK: Retail sales is basically how many like sales are in like grocery stores? Like food? shoes, clothes?
DAD: Exactly. So it’s the regular things that you and me buy every day, right? You can get on Amazon and get your store directly or otherwise, that retail sales. Are they coming back? How are they doing?
MAK: Are they’re doing pretty good.
DAD: They’re back to pre COVID levels. Do you remember us talking about that? Oh, yeah, we’re so pre COVID levels, which means that that’s before COVID. It’s the same amount of spending that’s going on. So there’s a lot of stuff that is going on. So some people are saying, maybe we didn’t need to spend the $1.9 trillion from Joe Biden, because they got lots of jobs coming back for five, the last five weeks is getting better. And there is a faster ramp up. They’re talking about the vaccinations are getting out there retail sales are the same before. What about the what about the housing market? Can you explain to us why what’s important about the housing market?
MAK: The housing market shows us basically, in general, like how the economy is doing it, it shows us like are people buying houses? Are people having enough money to buy those houses? And also is using up like a lot of our resources like wood, we have to get like for furniture, refrigerators dryer,
DAD: When you talk about the housing market grant. And or the housing industry? It affects a lot of different things, right?
DAD: And like what Makenna was saying, what are some of those things? Would you build a house what
GRANT: like you need a materials like wood or steel or break like also like the stuff that they put between the bricks?
DAD: And who actually who constructs the house a robot?
GRANT: No the builder.
DAD: Builder does? And so is that a job? Or is that not a job?
GRANT: That is the job?
DAD: So there are lots of jobs created from building a house. Yeah, there are mortgages, like MaKenna was just saying, like people being able to afford, there are items that are being bought that affect lots and lots of business. So that housing market is really crucial, because it affects so many people for jobs, so many businesses for things that are bought. And so it’s very important and what’s going on with the housing market. Do you remember?
DAD: If you don’t remember we did talk about it because he talked about the difference between an explosion like booming boom, the housing market.
GRANT: Oh yeah, there are they’re building a ton more house.
DAD: They’re building a ton of houses. Yeah.
MAK: Not very good for global warming?
DAD: Yeah. Oh, wow. Wow, some people still need to eat though, right. And so, so the housing market is doing really, really well. And it’s really booming. And so people are buying all the different things, roofing furniture, appliances, and stuff. And that is pushing things very much in the right direction. So we talked about the herd immunity and everything. What about like, can you explain what happened with one of the cruise lines that offered a cruise in 23? And what this cruise was and why this is kind of important. Can you either one of you guys?
GRANT: Okay, so here’s this cruise company. Wasn’t it? Like called? Carnival?
DAD: Carnival is a different one. I forget which one this one is? But what did it what did it what did it offer?
GRANT: So they offered tickets for a ride in 2023 or 2023, late 2022, early 2023. And it was going to be a world round trip. And they filled the bookings in one day. And that’s just crazy.
DAD: And this round the world how long is this thing gonna last MaKenna? Do you remember how long it’s gonna last? And how many ports? Are there going to be in how many countries
MAK: So basically, it’s gonna last like 180 days, which is about half of the year goes to like 96 ports. 33 countries and countries can have multiple ports. That’s why there’s 93
DAD: Absolutely. But what does this tell you about what’s going on in the economy and what people are thinking
GRANT: People think that COVID is gonna get better, like all the vaccinations are going to get out and they just want a break, honestly.
DAD: Absolutely. And that what you’re seeing? Yes. And why would people want to get out? We haven’t been training cramped up for a while. Have we?
MAK: Yeah, totally. Not.
DAD: Totally not. We’ve been in complete lockdown, right? Yeah. What do we call this spring fever?
GRANT: Spring fever. Like dad’s example like he’s seen older people going out because like they want to go do stuff but they don’t want COVID So they’re just like I’m done with If I need a vacation
DAD: I need a vacation. I’m going to have my vaccine by 2023. It’s going to be done. Can you imagine? One day 180 Day round the world trip on a cruise ship? Because we heard some pretty horrific stories, didn’t we about the cruise ships? Do you remember? Oh, you know, you guys don’t remember? Oh my gosh, that was when one person would get it. And the whole ship would just like explode.
MAK: Oh, yeah.
DAD: And you remember, they were stranded off the coast. And they were bringing in food and kind of thrown it on the deck. And then they would lie, you know, not on the deck. I’m exaggerating. But they would offload this food and then they would go back on the boat because nobody wanted to be exposed to COVID. And those were horrendous. So cruise lines opening up and also selling quite a few tickets is a big deal. Yeah. Right. So what do you call carnival, Carnival Cruise Lines. What was going on with Carnival Cruise Lines? Grant you were starting to talk about that a little bit.
GRANT: So okay, car. Carnival.
DAD: So when you book a cruise, do you book it like tomorrow? You’re like, hey, oh, I want to go to cruise. I’m gonna go tomorrow. No, you book in advance. Right?
GRANT: Go reservation for a restaurant?
GRANT: So basically, carnival had more bookings in 2020. year 2022 For the first half of the year than it had in the first half of 2019.
DAD: So in 20, it’s actually 2021. So this year, versus 2019. They have what?
GRANT: They have more bookings in the first half.
DAD: Yeah. So in the first half of this year, we’re only about a quarter the way through, they’re already saying we’re, we’re going to be kicking but for our bookings that are out. Go ahead.
GRANT: Yeah. So a quarter of a year, they had more bookings than the first half of 2019.
GRANT: So that’s crazy.
DAD: So there’s some crazy stuff happening. They’re doing a lot of bookings. They’re faster than what they hadn’t 2019. And the overall idea is that things are starting to come back. What about hotels?
MAK: Well, hotels, people are estimating it once. Rebound, slash actually start going back to normal. Until 2024. Yeah. But people are seeing some changes. And like people are seeing some positive changes that more people are going to hotels and yeah,
DAD: So the hotels, when do you need to remember what year the hotels are supposed to be coming back?
DAD: 2024. So you got a lot of stuff. So anything that relates to bookings, like you’re booking anything in the future, entertainment, airline, cruise, and hotels, those are the beach stocks. Okay, so you’re seeing the hotels are gonna turn around by 2024? What is some of the action in the airlines coming back to you?
GRANT: Ah, actually, like later this year, and like, early 2022.
DAD: Exactly. So what’s the can you get in the mindset a little bit when we’re talking about money, we got to get in the mindset of businesses, but then people who buy those things? What Why would people wait until 2021? And not do it right now?
GRANT: Well, because they’re, like, airlines, they’re doing better, but they’re just not like, like normal, and they’re not as good. They’re still bad. And
DAD: Because we’re still, we’re still trying to get through some of the vaccines, right? Yes. So people aren’t really 100% comfortable. But they think that the end of the year and the beginning of next year, that things are gonna go? Well, yeah. Well, in their survey that you and I were talking about, in the survey about international travel, how many of the travelers think they’re gonna go international, which means not a car, not just kind of next door? They’re gonna hop on a plane for a long time. Do you remember Mak.
MAK: And go all the way to Rome? Rome?
DAD: Rome, because he liked the Rome, right?
DAD: How many people? What kind of percentage of individuals
GRANT: Like 50%?
DAD: Half? Yes. So people are getting a confidence and an optimism and seeing the sun come out and getting excited. And I’ve got to admit, I’m pretty excited, too.
MAK: I am So excited.
DAD: Big checks that are coming to everybody. We’ve got money that’s coming into the economy, people are getting more optimistic things are starting to turn. And that is really, really exciting. Because what was the worst year on record for the airlines and travel and everything else?
GRANT: 2020 to.
DAD: 2020. That’s right. And so as we continue to, like move through this, it’s really good to see some positive things that are going on. Do you think people are looking at their lives differently now?
DAD: What do you think there? Are they saying, Oh, nothing like this ever gonna happen again? Or? Oh, my gosh, we need to take advantage of things now.
MAK: Yes. Can you take advantage of things now?
DAD: Yes, yes.
MAK: I mean, really, when you think about it, that could be any disease at any time.
DAD: Right. People want to get out and just start doing things and having fun and seeing their family. There’s a lot of people that have been in long term health care that families haven’t seen. And so they’re going to start letting people back. And so that’s really exciting. So what is something? That is really bad news? How many companies have failed over the last year? There was an estimate. It’s not really clear, but there are quite a few have there been G.
GRANT: Yeah. So like businesses, yeah. Like 100,000 businesses failed and still, like only.
DAD: We’re not really done yet.
GRANT: So half half of the entrepreneurs don’t there will have entrepreneurs think that they can make it through the year the other half are like, there’s no way we can make it through.
DAD: That. And that was a scary survey, you you bring that up that about a little over half think they can make it for another year. And the other half don’t think they can make it that long. And if things get better, that could all change, right?
DAD: But it keeps decreasing. So people think they’re runway which is the amount of time until that things go bad continues to lessen, but we’re starting to see some good stuff. So I’m going to keep my fingers crossed. Yeah, so we’ve looked at the markets we’ve talked a little bit about Biden in the 1.9 trillion the vaccinations and some of the beach items because those are some pretty good indicators of things that are to come. So anything else you guys want to talk about before we say goodbye?
GRANT: Oh, not much just stay safe out there hope you guys are getting maybe soon some covid vaccines. Maybe you’re not
DAD: Get that herd immunity up, right?
GRANT: What immunity?
DAD: Yes. All right. Well.
MAK: Happy turkey day!
GRANT: I think she means happy leprechaun.
DAD: Have you ever got silly, I love it. So let’s go ahead. Take goodbye and we’ll talk to you next week. Goodbye.