#risk #stocks #relief #virus
$DIA $SPY $QQQ $RUTX $VXX
“We have no doubt that some of the nearly $2-T in virus aid/relief/stimulus Mr. Biden is seeking from Congress will end up being spent stocks“– Paul Ebeling
The data show that risk-taking spiked following the last round of China Virus aid/relief checks.
Mr. Biden’s economic-recovery plan will likely drive the benchmark US stock market indexes, especially the techs and small-caps, North marking continuous record highs along the way.
Fed Chairman Powell says, and this is current, that the Fed can cushion/reverse any decline with bond-buying that pumps more liquidity into financial markets, and is standing by to do so.
There is a long standing Wall Street adage that warns, “Never fade the Fed.”
The Trump economy is revving, and there is really nothing Mr. Biden can do to hobble it for some time to come. So as long as the momentum is strong and the trend is North, “take what the market gives” and hedge the risk.
The perma-bears have been hammered for yrs and continue to be hammered. But they will have their frame, just not now.
American capitalism is a spectacular success and the American consumer is very resilient.
Have a healthy weekend, Keep the Faith!
