A New Stimulus Package, Investors Hedge Against Inflation, and Has Another ‘90s Trend Returned?
December 23, 2020 | FIRESIDE CHARTS
Economic activity has slowed amid the recent Covid surge. After much ado, Congress passed a new $900 stimulus package this week—though its future is uncertain after a tweet from President Trump—will it be enough to sustain those who have lost their jobs? And total inflows to cryptocurrency funds and products have grown 600% from 2019, but not without drawing increased scrutiny from regulators… Meanwhile, investors look to be hedging against inflation as vaccine distribution starts in earnest, and could the Nasdaq Composite be mirroring a pattern from the ‘90s?
Finally, we’d like to thank you for your continued support and wish you a very happy holiday season! Fireside Charts will be taking a break until the new year, and we’ll see you back on the blog on 1/4/21.
1. The economy and recovery were sputtering; will the new ~$900 billion in aid revive the recovery? It may leave some with extra cash to put into the markets…
Source: The Daily Shot, from 12/22/20
2. The disparity of the Covid economy is striking…if you still have your job(s), then the stimulus checks are “free money” to save or spend, but if you don’t, it is just survival mode…
Source: The Daily Shot, from 12/22/20
3. An entity designed for criminal enterprise broke a securities law? What a shock…
Source: The Daily Shot, from 12/22/20
4. Capital flows have been going into historical inflation hedges…
Source: The Daily Shot, from 12/22/20
5. Is food inflation in our future?
Source: The Daily Shot, from 12/22/20
6. Historically, just how extreme are the growth sector valuations? What happens when we get a mean reversion?
Source: The Daily Shot, from 12/22/20
7. Will 2021 be the last inning?
Source: The Daily Shot, from 12/22/20
8. All is well in the bond and equity markets for now, but earnings will have to grow support the stock markets’ valuations after the Fed lifts its near-zero rate policy in 2023…
Source: MarketDesk Research, from 12/23/20
9. Our hospitals are at capacity.
Source: The Daily Shot, from 12/22/20
10. Just as the Thanksgiving surge appears to have peaked (far right of each chart), we have started the Christmas holiday travel season…Please stay safe!
Source: The Daily Shot, as of 12/21/20
11. And now to important items:
Source: The Daily Shot, from 12/22/20
12.Please have a safe and joyous holiday both together and apart.
Source: CMHS Medieval Time, from 12/23/20
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.