Unemployment Climbs, Market Movement Picks Up Speed, and Gold is Approaching a Breakout Point
September 11, 2020 | FIRESIDE CHARTS
After establishing a fairly stable downward trend since April, initial claims for unemployment benefits are again on the rise. If they haven’t already, homeowners may want to grab a drink—while suppliers are still well stocked—and take advantage of the 30-year mortgage rate, which just slid to a record low of 2.86%. Finally, as the mega-caps push the speed of market movement to new heights and gold approaches a breakout point, equities are sending more and more reminders of the millennium era.
1. As feared, unemployment claims are rising as companies that were holding on can no longer afford to do so…
Source: The Daily Shot, From 9/11/20
2. Another “brewing” crisis? Wholesale distributors are running low on booze…
Source: The Daily Shot, From 9/11/20
3. This is incredible… 30-year loans at 2.86%? We remember mortgage rates almost 10 times this! If you haven’t refinanced yet, now is the time!
Source: The Daily Shot, From 9/11/20
4. As the mega-caps get bigger and bigger, there is an effect on the markets: speed of market movement. We note that the 2020 bear and recovery was the fastest ever and the last five trading days was the fastest correction for the NASDAQ ever.
Source: The Daily Shot. From 9/10/20
5. We have mentioned several times how this feels like 1999. Well…
Source: The Daily Shot, From 9/10/20
6. Over the last year value stocks have underperformed growth stock by ~30%. Another reminder of 1999…
Source: BofA Research Investment Committee, Fama & French, from 9/10/20
7. Gold is poised to break out one way or the other…
Source: The Daily Shot, From 9/10/20
8. The make-up of the Bloomberg Barclays Aggregate Bond Index is misunderstood by many. In addition to extending duration and increasing lower credits, the index represents less than 1/2 the bond market…
Source: SIFMA, Wells Fargo, S&P LCD, Bloomberg Barclays, As of 12/31/2017
9. Yesterday the markets did not react well to the ECB failing to signal more stimulus and the U.S. Senate’s stalemate on the “stimulus light” bill.
Source: Reuters, From 9/11/20
10. About 1/3 of the global new daily Covid cases are in India.
Source: JHU CSSE, As if 9/11/20
11. Wildfires have burned a record 2.2 million acres in CA alone. Fires continue to rage in many western states. As if Coved wasn’t bad enough…
Source: The Daily Shot, From 9/10/20
12. September 11,2001 is not over. New York, you still are in our thoughts and prayers!
Source: Statista, From 9/11/20
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.