Raising GDP And Stock Market Forecasts
The resiliency of the US economy continues to exceed expectations, supporting our increased forecast for growth and corporate profits in 2021.
The resiliency of the US economy continues to exceed expectations, supporting our increased forecast for growth and corporate profits in 2021.
2020 was a unique year, from the longest economic expansion ever to the shortest recession on record. Stock markets are forward-looking, and they want clarity on elections, too. Above all else, 2020 showed our ability to persevere.
2020 was an extraordinary year for the Federal Reserve (Fed). The Fed responded swiftly and decisively to rapidly accelerating financial and economic uncertainty. The current Fed was helped by precedents and policies created during the 2008-09 recession, but also went beyond them to address the specific economic needs of the current crisis.
December is widely known as one of the best months of the year for stocks, but most don’t realize that the majority of the gains happen in the second half of the month.
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.
Better than expected earnings, a likely split Congress, and major breakthroughs on vaccines all helped stocks soar last month.
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.
As 2020 winds down, it has been an extremely tough year on all of us. Still, there are many reasons to be thankful and today we will share some reasons investors should be thankful.
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.
Once the uncertainty is over, stocks tend to rally in November and December, with November the best month of the year during an election year.