Beaumont Capital Management does great market commentary. Their year-end essay follows. If you'd like to discuss any of these points with them, just use the VIP Messenger.
Economic activity has slowed amid the recent Covid surge. After much ado, Congress passed a new $900 stimulus package this week—will it be enough to sustain those who have lost their jobs? And total inflows to cryptocurrency funds and products have grown 600% from 2019, but not without drawing increased scrutiny from regulators… Meanwhile, investors look to be hedging against inflation as vaccine distribution starts in earnest, and could the Nasdaq Composite be mirroring a pattern from the ‘90s?
1. The economy and recovery were sputtering; will the new ~$900 billion in aid revive the recovery? It may leave some with extra cash to put into the markets…
Source: The Daily Shot, from 12/22/20
2. The disparity of the Covid economy is striking…if you still have your job(s), then the stimulus checks are “free money” to save or spend, but if you don’t, it is just survival mode…
Source: The Daily Shot, from 12/22/20
3. An entity designed for criminal enterprise broke a securities law? What a shock…
Source: The Daily Shot, from 12/22/20
4. Capital flows have been going into historical inflation hedges…
Source: The Daily Shot, from 12/22/20
5. Is food inflation in our future?
Source: The Daily Shot, from 12/22/20
6. Historically, just how extreme are the growth sector valuations? What happens when we get a mean reversion?
Source: The Daily Shot, from 12/22/20
7. Will 2021 be the last inning?
Source: The Daily Shot, from 12/22/20
8. All is well in the bond and equity markets for now, but earnings will have to grow support the stock markets’ valuations after the Fed lifts its near-zero rate policy in 2023…
Source: MarketDesk Research, from 12/23/20
9. Our hospitals are at capacity.
Source: The Daily Shot, from 12/22/20
10. Just as the Thanksgiving surge appears to have peaked (far right of each chart), we have started the Christmas holiday travel season…Please stay safe!
If you'd like to discuss any of these points with the Beaumont team, just use the VIP Messenger.
