Good Morning on Thursday,
The Fed was tame yesterday. So tame that bonds should have improved but Stocks took the center stage and left no room for bonds. It’s the way it has been going. Bonds didn’t get hurt, they just should have improved. It is much the same today. Stocks once again rising and bonds flat. The equation most assuredly is, why tie my money up in an asset that pays almost zero (bonds) when I can make so much more in the stock market? Data today was mixed but the most important, unemployment claims, are getting worse and again, missing expectations. Unemployment claims at 885k are the worst in 3 months. Do you remember when, in years past, the holidays brought seasonal employment and unemployment claims fell? Well, not this year. There is really no reason to float.
More of the same negotiating but we are getting closer to a stimulus deal. The deal now looks to be approximately $900 billion that would include another round of direct stimulus checks, though likely smaller than the initial round that provided $1,200 to individuals and $500 per dependent earlier this year. The new bill, which Congress hopes to pass by the end of the week, is also expected to include $300 a week in enhanced federal unemployment insurance as well as funding for vaccine distribution, small businesses and schools.
And if you’re not traveling over the holidays, here’s an alternative. The WSJ shared a new site which allows you to see and hear moments from around the world. The name of the site is Window Swap, I’ve been stuck on a scuba diving scape.
Please remain safe and healthy, make today great.