U.S. stocks have continued to climb amid optimism about a vaccine-led economic recovery, but it is a narrow path—buoyant investor sentiment could easily be deflated by bad news. Although global economic growth has struggled, an acceleration in vaccinations in major countries could support stronger growth in the second quarter.
While we prepare an Investment Update discussing our year-end review and a look forward, we want to provide an update on what is happening currently in the Capitol and what that may mean for the markets.
The markets have been encouraged by COVID-19 vaccine news even though we are experiencing a fourth quarter spike in cases. The expectation of higher employment and higher economic activity in 2021 has investors re-entering the markets and repositioning their portfolios in anticipation of a post-COVID-19 world. The economic numbers for the fourth quarter may see a
The markets have recently been focused on three main headlines - the election, a stimulus package, and the approval of a Covid19 vaccine. We often say the markets dislike uncertainty and would rather know bad news than have uncertainty linger.
As we close the third quarter of 2020 and enter a pivotal fourth quarter, we’d like to reflect on this year, not just with the Covid19 pandemic and other news that has created one of the most unsettling periods of time in our nation. We also look forward to the year end and the effects of a Presidential election.
Last night we learned that President Trump and his wife, along with members of the White House staff, have tested positive for the Covid19 virus. We offer prayers for safety and healing to all of our government and political leaders and their families.
First, it would be helpful to review a part of our September 4th market comment:
The markets will rise, and gravity will weigh them down and like gravity in nature, this is a natural occurrence. The pullback in the markets Thursday and Friday are reminders that gains and losses are a consistent and normal part of investing.
February 24, 2020 is when COVID19 became real for most Americans.