October 2016 Letter
Dear Friends -
Have you ever ordered a product online and received delivery in just a few hours? Or have you availed yourself of the services of Uber, Lyft, Airbnb, or Instacart? If so, you have contributed to the ‘gig’ economy.
The Commerce Department defines the ‘gig’ economy as digital matching firms that:
• Use technology, such as mobile apps, to facilitate peer-to-peer transactions
• Offer workers flexibility in determining their working hours
• Rely on workers to use their own tools or assets to provide a service
The ‘gig’ economy is the topic of the attached quarterly letter, “9 to 5”, and we believe it is having enormous ramifications across the economy; impacting the labor market, financial institutions, technology companies, the IRS, and indeed, touching our everyday lives. We welcome your comments or questions on this topic.
As we approach the elections, volatility in the financial markets is expected to continue but the U.S. economy maintains a growth path of 2%. Meanwhile, the Federal Reserve has indicated a desire to gradually raise short-term rates. These and other issues continue to weigh on the markets and produce challenging times.
Covington has just completed its twelfth year with client assets now exceeding $2 billion. Our partners and employees express their gratitude for your trust and loyalty. Please let us know if we can do anything further to serve your needs.