The Week in Review: November 23, 2020
Buying with a Keystroke and a Mouse
The internet has become an indispensable part of our lives. We access information, we communicate, and we purchase goods and services with a few simple keystrokes and the click of a mouse.
The graphic above illustrates the growing importance of internet sales.
Over the last decade, the portion of online sales as a percent of retail sales has increased by almost 60%—from about 8% of sales to nearly 13% (just prior to the pandemic). It helps explain why some department stores are struggling as consumer buying habits change.
March and April registered a significant shift in buying behavior when lockdowns shut stores and consumers were forced to go online for some goods.
As businesses reopened in May and June, the portion of retail sales placed online subsided but remains well above pre-pandemic levels.
Further, retail sales, which exclude spending on services, are above pre-pandemic levels per U.S. Census data. Put another way, online sales are grabbing a bigger slice of a bigger pie.
Over the last decade, consumers were warming up to the convenience of online buying. The pandemic appears to have permanently accelerated that shift.
Meanwhile, investors have become skittish amid the surge in daily COVID cases. Former FDA Commissioner Dr. Scott Gottlieb told CNBC last week that the COVID-19 vaccines could “effectively end this pandemic in 2021.”
Economic indicators such as the Conference Board’s Leading Economic Index continue to signal that the economy is on the road to recovery. But new social distancing restrictions could have shorter-term economic consequences.
If you have any questions or concerns, feel free to reach out to me, Will, or Tyler.
Two for the Road
An estimated 5.8 million Americans are living with Alzheimer’s, dementia, or other memory disorders. The estimated lifetime cost of dementia care can exceed $750,000 in direct and indirect expenses. —Barron’s, October 11, 2020
America has about 800,000 practicing physicians but needs twice that number of people to administer its payments system. —"The Body, A Guide for Occupants," by Bill Bryson Every
This commentary reflects the personal opinions, viewpoints and analyses of the Stordahl Capital Management, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by Stordahl Capital Management, Inc. or performance returns of any Stordahl Capital Management, Inc. Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this piece constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Accessing websites through links directs you away from our website. Stordahl Capital Management is not responsible for errors or omissions in the material on third party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from the use of those websites. Please note that trading instructions through email, fax or voicemail will not be taken. Your identity and timely retrieval of instructions cannot be guaranteed. Stordahl Capital Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
1. The Dow Jones Industrials Average is an unmanaged index of 30 major companies which cannot be invested into directly. Past performance does not guarantee future results.
2. The NASDAQ Composite is an unmanaged index of companies which cannot be invested into directly. Past performance does not guarantee future results.
3. The S&P 500 Index is an unmanaged index of 500 larger companies which cannot be invested into directly. Past performance does not guarantee future results.
4. The Global Dow is an unmanaged index composed of stocks of 150 top companies. It cannot be invested into directly. Past performance does not guarantee future results.
5. CME Group front-month contract; Prices can and do vary; past performance does not guarantee future results.
6. CME Group continuous contract; Prices can and do vary; past performance does not guarantee future results.