You’re happy, You’re lucky, You’re Blessed! Of course, only because you’re reading the indispensable weekly newsletter by the one and only Tomi from Trove.
Today we bring you the week ahead in view, a little bit of history and some heroic shout outs!
Why wait? Let’s dive right in.
Bi-Stocks? White House Changes Hands
Biden heads into inauguration with a stock market tailwind
It’s no longer news that this is ‘bout to be a huge and significant week as power changes hands in the White House! Joe Biden will be inaugurated as the 46th president of the United States on Wednesday, and as anticipated, the markets are watching to see how both his plan to combat Covid and his $1.9 trillion stimulus package will fare. I mean, talk about promising to hit the ground running: We shall see! So Biden started off his presidency with about ~13% post-Election Day market gain, and the best S&P 500 performance between the election and the inauguration for any president going back at least to 1952, according to research houses.
History Lessons on Markets & Politics, Shall We?!
If you like history, you’d be pleased to know that Biden’s stock market should continue to do well, since the average first-year gain for Democratic presidents is ~11%. So if history is a guide, the stock market should do well with Biden. Note that the average gain of the S&P 500 in the first 100 days for Democratic presidents is ~3.5% and only 0.5% for Republicans over the same period. The S&P 500 also gained an average of 11.3% in the first year of a Democratic president, but just 5.7% for Republicans, going back to World War II.
So… some light at the end of the tunnel?
Hold your breaths and fasten your seatbelts.
Bull Market, Still Young?
“This bull market is still very young,” said Jim Paulsen, chief investment strategist at the Leuthold Group, “It is not yet even one year old, and considering the large U.S. output gap and how high unemployment is, additional improvements in the economy should keep the stock market rising for a few more years.” To Paulsen and others on Wallstreet, many of the things that look like impediments today, including high valuations, set the stage for improvement that could sustain a rally. Their point being that after recessions in 1992, 2002 and 2009, price-earnings ratios fell as growth resumed and stocks still managed to rise, with the help of Federal Reserve stimulus.
Who doesn’t love a bull market? …a “young” one at that!
The Week’s Calendar in lieu of Earnings Season
Monday
The US Markets will be close
Tuesday
Earnings: Bank of America, Goldman Sachs, Netflix, Charles Schwab, Comerica, Halliburton, State Street, Interactive Brokers, J.B. Hunt, Zions Bancorp, FNB
Wednesday
Earnings: Procter & Gamble, U.S. Bancorp, Citizens Financial, Bank of NY Mellon, Fastenal, United Airlines, Alcoa, Discover Financial
Thursday
Earnings: Intel, IBM, Travelers, Baker Hughes, CSX, PPG Industries, Intuitive Surgical, Northern Trust, Union Pacific, Truist Financial, Fifth Third, KeyCorp
Friday
Earnings: Regions Financial, Schlumberger, Ally Financial, Huntington Bancshares, Kansas City Southern
A Vaccine Passport?
“As the world begins to recover from the pandemic, having electronic access to vaccination, testing, and other medical records will be vital to resuming travel and more,” said Mike Sicilia, executive vice president of Oracle’s global business units. Guess what these folks are doing? Microsoft, Salesforce, and Oracle have joined hands to empower individuals to obtain an encrypted copy of their vaccination credentials and store it in a digital wallet of choice — like those provided by Apple & Google, or print out a paper copy of the credentials containing a QR code. The team anticipates that a trustworthy, traceable, verifiable, and universally recognized digital record of vaccination is urgently needed.
Another angle on Social Equity.
…and it’s a full wrap! We’ll see how the markets fair with inauguration and bring your the juice next week! Sit tight, folks!
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Love. Light.
…and endless sunshine!
XOXO
