Good Thursday AM,
I don’t know where to start today. I guess we start with yesterday where a group of protestors marched on the Capitol Building, and for lack of a better description, invaded both the House and Senate floors. It unfortunately turned violent, although I want to believe that was never the intention. Four people lost their lives and 14 officers were injured. Tragic! Markets were in flux yesterday with stocks surging and bonds tanking but didn’t react to that event whatsoever. That die was cast earlier in the day when it was clear that both Senate seats from Georgia had turned Democrat.
Today more of the same. Stock surging although I don’t understand why. Bonds tanking some more, the selling will have to subside soon. If for no other reason, the Fed is going to continue buying bonds in an amount of essentially whatever is needed to support the economy. The data today was not great. Still 787k new unemployment claims. That’s a lot of people freshly out of work. During normal economic conditions, the number is about ¼ of that.
Tomorrow is a big day with the jobs report. That will be the best chance for bonds to recover, although the bar is being set pretty low, with an expectation of only 100k new jobs having been created in December.
And just a comment on the absurdity of the current situation, Facebook and Instagram have now suspended President Trump’s accounts though at least the end of his presidency.
Last, Bitcoin at 38k? Anyone wanna share why?
The big takeaway I cannot stress enough is that rates are still incredibly low. Even with a small reset of .125% – .25%, rates are of the lowest we will see in our lifetime.
Please remain safe and healthy, make today great!