Stocks moved into record territory early in today’s session and then … whoosh! … completely changed direction and turned negative.
Of course, a lot of reasons are being tossed about … including a reported end-of-the-year drop in consumer sentiment … and the realization that the initial jobless claims number (holding above 1 million per week, according to Oxford Economics/Haver Analytics) sets up quite an obstacle if it continues.
And we have our old friend … the foe of confident investing … uncertainty.
Up until a short while ago, it seemed that the government would be at a standstill of sorts … where one party controlled the House and the other, the Senate. Historically, this has usually been good for markets.
But recent polls seem to point to the Georgia Senate races tightening up … and a number of strategists claim that if the Democrats control all three areas (the White House, House and … effectively … Senate) it could result in a market decline. In fact, CNBC reports that Oppenheimer strategist, John Stolzfus, feels a 10% correction is in view if the Democrats win both races in Georgia. Please note, this is the same person who – just a few weeks ago – called for an 18% market gain in 2021 once the pandemic concerns have passed so it is interesting to see how his tune has adjusted.
Sorry, a lot of words today. A lot of stuff on my mind as I need to get some work done on my house and am trying out how to have people in the home for estimates … people whose “social bubble” is completely unknown. Do I stand 10’ away? Do I spray everything they touch? This vaccine can’t come soon enough.
Meanwhile, as I’ve written in the past I’ve purchased … and been satisfied with … some of the Impossible Foods “fake beef” products … but I still eat “real steaks” quite a bit.
A vegan friend of mind said she feels that anyone who sells meat is disgusting.
I simply told her that anyone who sells fruits and vegetables is grocer.
Have a great day.
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
cell: (856) 625-7915
… As of 11:41 AM today …
Quick Look at the News
The holiday is behind us so what comes next? For many the answer is credit card bills. Boy, these websites make buying things on credit as easy as pressing a button (Acorn)https://grow.acorns.com/2020-holiday-debt/
… but there is one way to pay off your bills … just hit the lottery. Both Megamillion and Powerball are above $400 million … and, fortunately, many states allow for online purchase (CNBC)https://www.cnbc.com/2021/01/02/mega-millions-jackpot-jumps-to-432-million-what-to-do-if-you-win.html
Does the recent Bitcoin run-up have legs? Some think that even with this morning’s volatility … Bitcoin will more than triple from where it is today. (BitcoinMagazine)https://bitcoinmagazine.com/articles/bitcoin-will-rise-above-100000-in-2021
Is it finally the death of coal? You might think so, with the increase in green energy and all. But jobs are important and coal does support quite a few of us (Electrek)https://electrek.co/2020/12/31/us-consumes-green-energy-coal-first-time-since-1885/
… and the question is two-fold … as we wonder if there are enough green energy jobs to take care of displaced coal workers and also is it solar, wind or something else that will shine? (Resilience)https://www.resilience.org/stories/2021-01-03/solar-now-cheapest-electricity-in-history-how-much-will-it-matter/
For those who want to take a quick glance … and still care … this is the NFL playoff schedule as games start this weekend. Funny … the Jets aren’t listed (ESPN)https://www.espn.com/nfl/story/_/id/30646089/nfl-playoffs-super-bowl-schedule-afc-nfc-bracket-seeds-tv-s-more