HGSI Doc Top Down Review 12.27.2020
Previously published 12/27/2020 on the HGSI Community Forum. For earlier access to Dr. Scotts Top Down Review, please register at HGSI Community Forum.
Happy Holidays and Welcome to This Week’s Review
We have finished the first of 2 year-end holiday-shortened trading weeks. This week except for the RUT, we ended the week almost where we started. The RUT continues to outperform and is now up a remarkable 20+% on the year, trailing only the NASD in YTD performance. This for an index that was down 40% or more in March from the start of the year.
The markets remained resilient in an environment of worsening COVID (cases and new strains), logistic and other vaccine delays, and continued shutdowns throughout the country. Perhaps some of the negativity was balanced by a second approved Vaccine from Moderna and a Brexit deal in Europe. Here we continue to wait on the White House and Congress’s ongoing discussions on signing the passed COVID relief, Defense spending, and budget extending bills. Breaking from his party Congressional Leadership, President Trump is threatening not to sign unless the population’s stimulus checks are $2K per person.
We have some volatility coming, but we might not see much movement either way until after the New Years Holiday with Santa in play. Plus, on January 5, we have 2 Senate Runoffs that will determine the Senate Majority. It is hard to believe that even if the Democrats take both seats, a 51-50 majority (VP included) will be enough to get thru much of the far-left agenda. Thus, it is possible that regardless of the outcome, the markets will look past this election.
Have a Safe, Happy, and Healthy New Years