2021 is almost here! 2020 was full of excitement, heartbreak, and drama. If I were to tell you a year ago that you had to wear a mask every day, Tom Brady is in Tampa Bay, and Tiger King is a global phenomenon. You would have told me that I’m loco! Fast forward 335 days and here we are. All are unsettling, but facts nonetheless.
Moving forward into 2021, there are 3 key areas to pay attention to. Let’s break them down!
1. GEN Z.
Born between the years 1997 and 2010, this generation hasn’t known life without a computer. A generation that is built for working “remotely,” using technology, and communicating virtually. Since GEN Z is the up and coming workforce, this may allow companies to let go of veteran non-essential workers. To be replaced by younger, more affordable workers.
According to tps://online.csp.edu GEN Z is making up 40% of not only the working population but the consumer population too. So, whether you own a company or work for a corporation, it’s going to be vital for your success to be able to communicate with GEN Z effectively.
2. Remote Working.
Heading into 2021, COVID-19 has forced companies to move their workforce back into their homes. This means that businesses that have large office buildings are in a bit of a quagmire. A few questions to consider are:
· What are they going to do with these large pieces of real estate?
· How is this going to affect their bottom lines?
· Will, we ever go back to working in an office full time?
Ultimately, owning real estate for large companies provides tax benefits such as the depreciation of the building, utilities, maintenance, etc. What I’m thinking is that with less of the population going into offices, this will provide companies fewer deductions for running their businesses. This could go a few different directions.
First, by having less overhead, this may increase the profits for businesses, but at the same time may cause them to pay more in corporate taxes. This would be a cause and effect for the businesses to be more profitable, but at the same time will have to pay a higher tax bill.
How will this impact your investments? We will just have to wait and see.
3. Dollar Losing Value.
An important topic of discussion prior to the COVID-19 pandemic was the Trade War with China. With the dollar losing value, this will directly affect the United States’ imports and exports. Essentially if the dollar is worth less, this means that we aren’t able to purchase as many goods.
On the flip side, since the dollar is decreasing in value, we will be able to allow other countries to purchase more goods from us. This is due to the fact that their currency is more valuable than it once was. However, the United States doesn’t need to rely on trading with other countries.
The reason we don’t need to trade with other countries is that all of the resources that we need are right in our backyard. What you need to be concerned about is that every major war has been around currency. So, if the dollar starts to lose too much value, history has told us that this may lead us into a battle with countries such as China.
At large, you don’t have a crystal ball to tell you the outlook of your future for 2021. You do have access to unlimited resources through the internet to make sure that you’re always staying ahead of the curb. By taking note of what’s going on in our world, you will typically find yourself winning more than you lose. And that my friend is one of the many secrets to success.
Joshua Krafchick, AKA “CHACHI”