After climbing slightly through August, new unemployment claims ticked down last week. We’re far from out of the woods though as permanent business closures continue across the country. And as the Fed now intends to keep rates at historic lows through at least 2023, it may be time to move beyond traditional allocation methods like the 60/40 portfolio. Do you have an alternative in place?
1. Good news last week on the unemployment front:
Source: The Daily Shot, from 9/18/20
2. Permanent economic damage from Covid in some economic sectors is unavoidable…
Source: The Daily Shot, from 9/18/20
3. The Philly Fed survey softened a bit but is still higher than 2019…
Source: The Daily Shot, from 9/18/20
4. Without further stimulus, are the banks/lenders in for a rough ride?
Source: The Wall Street Journal, from 9/18/20
5. The Fed has now stated that the current rate environment will stay in place until at least 2023, prolonging the period that traditional models like a 60/40 will likely fail return expectations…
Source: The Daily Shot, from 9/17/20
6. Staying at home has certainly increased retail investor activity. Is this also increasing market volatility and the speed/magnitude of market moves?
Source: The Daily Shot, from 9/18/20
7. Is a new, rather silent bubble building in U.S. stock valuations?
Source: BofA Research Investment Committee, from 9/18/20
8. Covid has been particularly devastating in Latin America, which has been reflected in their stock markets. Does opportunity lie ahead?
Source: MarketDesk Research, from 9/18/20
9. An unanticipated cost to having school aged children…
Source: The Daily Shot, from 9/18/20
10. Just how bad are the fires out west?
Source: Financial Times, 9/18/20
11. Yikes!
Source: The Daily Shot, from 9/18/20