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Investors are looking at the 'impact to their pocket' ahead of the election: Ellevest Financial Advisor

Stocks are rising after President Trump reversed course on his stimulus views. Ellevest Financial Advisor Cameron Rogers joins the On the Move panel to discuss.

Video Transcript

JULIE HYMAN: Let's start with the back and forth that we've seen from the president on stimulus and the market reaction to that. We've had a number of tweets, of course, that being the president's preferred method of communication. This morning, he said "move fast. I'm waiting to sign." And this is after yesterday afternoon, he seemed to halt stimulus efforts again with a tweet, saying, "I've instructed my representatives to stop negotiating until after the election, when, immediately after I win, we will pass a major stimulus bill."

Then later last night he said the House and Senate should immediately approve $25 billion for airline payroll support and $135 billion for Paycheck Protection Program for small businesses. So we're trying to sort it out. The market's trying to sort it out. All of Washington is trying to sort it out.

To help us do that, we're joined by Cameron Rogers. She's a financial advisor and Ellevest. Cameron, talk to us about how we should be interpreting this. And also, I would have to ask, you know, the president seeming to derail the stimulus negotiations, which didn't really seem to be going much of anywhere anyway.

CAMERON ROGERS: Yeah, absolutely. And thank you, Julie. And it's great to be on. You know, we think that there is a fragility to the US economy currently. Obviously, that's going to be the case until we see more rapid COVID testing, until we see an eventual vaccine. And the stimulus back and forth is a part of it. You know, we are of the view that, you know, you should spend in times of war and review in times of peace. And so it's-- you know, it's frustrating to see this back and forth and lack of a resolution.

And in many ways, you know, we are seeing it both in individual data and, you know, how that's being interpreted by both the business community and across consumers.

ADAM SHAPIRO: But in the long run, we're going to have a stimulus bill, whether it's before the election or after the election. So shouldn't that bring some stability to these markets? There's a huge injection coming.

CAMERON ROGERS: We would hope so. It's just-- you know, the market is parsing out all of these different factors, right? Whether it's, you know, kind of recent downticks in data around the economy and labor markets, the correction in big tech, the upcoming presidential election. So, you know, while the stimulus measure is part of it, the market is parsing through all of these various things and, you know, is being driven on different days by different factors.

AKIKO FUJITA: Cameron, it was interesting to see market reaction yesterday. For all of the talk of this expectation of a stimulus bill being delayed until after the election, well, it turns out a lot of investors hadn't necessarily priced that in. What do you make of this piecemeal approach, a targeted approach, that Republicans have been talking about? This is a conversation that came up, well, in September, when Nancy Pelosi essentially said that would mean the Democrats would lose their leverage, that they would not necessarily be onboard with that.

How do you think the investors parse the back and forth between the two sides right now?

CAMERON ROGERS: You know, in many ways, investors are kind of looking to the impact on their pockets and on consumers. So, you know, if you look to the period from end of March through June, personal income was up due to many stimulus measures, whether on the unemployment side or individual checks. That came down after those stimulus measures were halted.

So I think you know individual investors are looking at it kind of both on the individual level as it relates to the economy and then what it looks like for financial markets.

JULIA LA ROCHE: [INAUDIBLE] it's Julia La Roche: And I suppose I should first disclose that I have my Roth IRA and my IRA with Ellevest. And I know you all focus a lot on women. And at the top this conversation, you mentioned some fragilities in the economy. I was wondering what specifically are you seeing as it relates to women and different groups?

CAMERON ROGERS: Yeah, well, first and foremost, thank you, Julia. We are so grateful for your support. And, you know, in terms of fragilities, is I would look to the most recent jobs report. And that is September. And September is an important jobs report for us to review. Because it's the first one since the presidential election.

JULIA LA ROCHE: And while the US unemployment rate has fallen from 14.7% in April to 7.9% in September, you know, there are still 7% fewer Americans with a job than in February of this year. You alluded to specific gender-based labor statistics. And to your point, we find this to be particularly distressing when you looked at who stopped working or stopped looking for work in the month of September.

And in September, 80% of the 1.1 million US workers who dropped out of the workforce were women. Black and Latinx women continue to be the hardest hit. And that unemployment rate across those communities is 11% versus the 7.9% for the broader US workforce.

JULIE HYMAN: Cameron, thanks for your time today. Cameron Rogers is Ellevest financial advisor.