Durable Goods Orders Approach Full Recovery, the Market Rotation Continues, and Nasdaq Trading Hits 15-year High
November 30, 2020 | FIRESIDE CHARTS
October Core PCE inflation declined in line with expectations and remains below the Fed’s 2% target at 1.4%. Durable goods orders meanwhile surprised to the upside and are approaching a full, and v-shaped, recovery. Is the broader economic recovery set to become even more “K shaped” though as pandemic-specific unemployment programs—currently utilized by 13 million+ Americans—approach a December 26th expiration date? The market rotation continues meanwhile as small caps benefit from improving financial conditions and vaccine optimism. Are the same forces fueling the surge in Nasdaq trading, which just hit a 15-year high?
1. The Fed’s favorite measure of inflation moderated yet again…
Source: The Daily Shot, from 11/30/20
2. The robust housing market is helping this metric grow nicely…
Source: Mizuho Securities, U.S. Census Bureau, through October 2020
3. Do we have an economic tsunami coming at us? This will affect almost 14 million fellow Americans…
Source: Statista, from 11/30/20
4. As the post-election/vaccine news rotation continues, the S&P equal weight index posted its first monthly out-performance of the market-cap weighted S&P 500® Index in years…
Source: The Chart Store, from 11/30/20
5. New, stay-at-home investors? It reminds me of 1999 when every cab driver had a hot stock tip…
Source: The Daily Shot, from 11/30/20
6. The USD’s decline continued as it has broken through several points of resistance. Gold, usually the mirror image of the USD, is also falling as vaccine news takes the headlines…
Source: The Chart Store, from 11/30/20
7. Pandemic news is becoming passe in the media. It is not so for those seriously ill
Source: The Daily Shot, from 11/30/20
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.