In our view, while elections have consequences, the consequences are rarely as stark or as predictable as prognosticators suggest.
Volatility in the markets. A historic election. A global pandemic. 2020 has thrown us all into an interesting period of irreducible uncertainty, and now more than ever, clients are looking to you to provide them with “real” financial advice in order to navigate these turbulent waters.
COVID-19 is first and foremost a healthcare crisis, and its impact on the world has been devastating. That said, as investors, we must try to determine the long-term economic consequences of the pandemic.
We upgrade U.S. equities to overweight, with a preference for quality large caps riding structural growth trends – as well as smaller companies geared to a potential cyclical upswing. We prefer to look through any near-term market volatility as Covid cases surge. Positive vaccine news reinforces our outlook for an accelerated restart during 2021, reducing risks of permanent economic scarring.
As we approach the end of the year it is probably safe to say that few if any have ever experienced a year like 2020. The municipal market also experienced a year like no other with the only recent parallel being – at certain times during the year – the 2008 financial crisis.
Investors last week focused on the positive coronavirus vaccine trials, as well as the negatives surrounding spiking virus cases and mounting economic lockdowns around the world.
U.S. Treasury yields closed lower last week, led by longer maturities. Despite positive news on possible vaccine progress, investors were focused on the potential near-term damage from surging virus cases across the globe. A public dispute between the U.S. Treasury and the Federal Reserve (Fed) about the Fed’s lending facilities also undermined investor confidence.
Read the Weekly Market Snapshot to stay up-to-date with stock markets and sectors, bond market returns and financial news for the week.
The President-elect says "America's back," but Europeans (and global investors) ask "how long?"
Weekly Market Compass: As we face a challenging Thanksgiving holiday, we highlight reasons to be optimistic about the markets
It won’t be the Thanksgiving that many of us had envisioned. COVID cases are currently rising at catastrophic rates, and hospitalizations and fatality rates are following in tow. Family plans have been meaningfully altered — I, for one, won’t be attending the Macy’s Thanksgiving Day Parade for the first time in decades.