December 6, 2020
Weekly Market Outlook
By Keith Schneider
The dollar is crumbling,
US Long Bonds are teetering,
inflation is bubbling, and
equities globally seem quite content, or for that matter, thrilled.
US stocks closed on all-time highs, and many foreign markets did even better this past week
Most noteworthy are the new themes that are taking hold.
The first one is that US equity leadership has passed the baton to foreign markets, which have had the most impressive gains recently on a relative basis.
Other new themes in the US are the continuing leadership by the SMID caps (Small and Mid-Caps).
Value stocks also seem to be arousing from a decade long slumber.
This is interesting because value stocks generally perform well during recessions and bear markets. However, we are hardly in the throes of a bear market now.
The highlights of this week’s market action are the following:
Considering how hungry the economy is for new stimulus, let’s see how long equities can ignore the jump in rates on the US long bond.
Best wishes for your trading.