Equities Climb, the USD Remains Under Pressure, and Record Covid-19 Cases Create a Headwind for Economic Recovery
November 9, 2020 | FIRESIDE CHARTS
Equities were off to the races this morning and are on track to set new records following the conclusion to a tense election week and promising news on a Covid-19 vaccine. The U.S. dollar has experienced significant weakness since March and may remain under pressure from growing risk appetite and the transition to the new administration. Eyes will also be on inflation this week—numbers remain fairly weak but are inching closer to 2%. Could we soon see the Fed’s new policy of average inflation targeting in action? Momentum is slowing on the economic recovery in the U.S. as new daily cases spike to a record of 120,000+/day, so we’re hoping this doesn’t turn into a case of stagflation…
1. While October experienced some pre-election jitters, so far, the post-election market reaction has been solid across the board…
Source: The Chart Store, from 11/9/20
2. Will renewed stimulus hopes and new policies drive the dollar lower again?
Source: The Chart Store, from 11/9/20
3. Careful what you wish for… While inflation remains subdued, it is climbing towards the Fed’s target of 2%…
Source: The Daily Shot, from 11/9/20
4. In general, international equities and other risk assets are also cheering the removal of election uncertainty…
Source: The Daily Shot, from 11/9/20
5. The U.S. now has over 120,000 new Covid cases per day, 5 or 6x the amount that sparked the first round of shutdowns earlier this year.
Source: JHU CSSE, as of 11/9/20
6. The new Covid wave is hindering the recovery…
Source: The Daily Shot, from 11/9/20
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.