Jobless claims drop…the number of unemployed Americans rise…the national debt grows…and education pods pop up across the nation…

News of a drop in the number of first-time jobless claims falling to 881,000 last week was encouraging on the whole. Taking a look at the total number of Americans still out of work numbering more than 29 million is reason enough to investigate what is driving that high number if jobless claims are shrinking.

Tucked away in the CARES Act that was passed by Congress earlier this year is a provision in Title II, Section 2101 that creates a funding stream called the Pandemic Unemployment Assistance. Participation in this program requires that a person be diagnosed with COVID-19 or be the caretaker of a person with COVID-19 who cannot work – even remotely – during the pandemic. Claims under the Pandemic Unemployment Assistance program rose sharply last week to 759,482, an increase of 151,674, according to unadjusted figures.

Analysts predict that job creation will continue to grow, but layoffs in major industries such as airlines and even technology are driving concerns the economy could be in somewhat of a bubble that could easily burst given the volatility of the market at this time.

Looking back at the Nasdaq this year, it has gained about 34% and closed above its 200-day moving average for 83 consecutive sessions. That is a good sign that definitely shows consistent strength, but along the way there have been volatile spikes in some individual stocks causing many to compare this time with the collapse of the tech bubble from two decades ago. For many economists, this time reminds them of 1999 and 2000 when the market tanked on tech.

Looking out over the next 12 months, tech stocks that stand to remain strong given the market’s volatility are those that are strong in the fundamentals of what tech is and can provide directly to customers. Given the widespread availability of various tech services directly to consumers, the companies that are most capable of scale and sustaining their business over time are those that continue to master the basics of their service and not chase various add-on’s that may or may not be helpful over the long term.

And speaking of the long term – The Congressional Budget Office released a report this week projecting that the total debt of the United States will exceed the size of the entire country's economy next year. This comes as trillions of dollars have been directly injected into the national economy that will be classified as debt on the nation’s balance sheet. It might be strange to think of the United States government sticking to a budget, but when the numbers are analyzed under the general accounting principles that most Americans understand, it isn’t hard to see the path we are on isn’t sustainable forever. Soon – and very soon – taxes will rise to pay for the increased spending of the government. Of that – we can be sure.

Many school districts around the country have announced their fall classes will consist either of full-time remote learning or hybrid learning where children will spend up to a week at home at a time. As a result, some parents are taking matters into their own hands.

All across the nation “pandemic pods” are being formed. These pods are a do-it-yourself approach to restarting children’s academic progress and social lives after the challenging lockdowns of last spring. In these learning pods, families come together in small, closed groups to provide and share childcare, curriculum, or both.