A Positive Outlook for 2021
As 2020 comes to a close and we look forward to 2021, we take a look at what we can expect in the stock and bond markets, the economy, and a new post-election policy environment in 2021.
COVID-19 May Threaten the Recovery
Increasing COVID-19 cases in Europe and the United States have brought new restrictions. The stock market doesn’t appear fazed by the recent outbreaks, but underlying economic data is beginning to reflect the latest government and consumer shutdowns.
Frothy Sentiment Rides Bullish Technicals
The reaction from stocks since the US election has been strong. The S&P 500 Index is up, and small caps have soared. Sentiment could be getting a little frothy as well, which may increase the odds of a pullback.
Should We Trust the Polls?
As the race for the White House enters the homestretch, some indicators suggest the election may be closer than polls are saying. GDP, stock performance, and the US dollar all have a history of picking the winner.
Market Responses to Election Uncertainty
November presidential election results may be delayed or disputed, or both, and President Donald Trump’s COVID-19 diagnosis adds to the noise. How will the markets react to this election uncertainty?