CNN's Scott Jennings Had the Most Concise Take About Last Night Elections
The Crusty Commies Are a Joke
Barack Obama Doing This Behind the Scenes Confirms Again That Kamala Was a...
Lawn Gone Liberty: The Update
Deportation Dysphoria in the Press, and MSNBC Loses Its Star Statistician
Jeffrey Goldberg Congratulates Himself All Over PBS
Shut Down the Department of Education ASAP
Why National Concealed Carry Reciprocity Will Make Americans Safer
Self-Destructive Democracies
The President Who Set the Precedent Against a Third Term
Roadmap to Reform CDC -- Currently the Centers for Disaster and Confusion
Progressives Are Well Organized, Patriotic Americans Have to Do It Even Better
Supreme Court’s Getting Busy
Lawmakers Shouldn’t Let Bad Actors Get Away With Harming Children Online
Where Are the Left’s Protests Now?
OPINION

With Vaccines And Stimulus On The Horizon, Markets Ready For Takeoff

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
Advertisement
Advertisement
Advertisement
AP Photo/Jessica Hill

There is a great sense of optimism this morning, as investors look for fiscal stimulus to happen, watch the vaccine roll out and brace for the Federal Reserve to provide more accommodation. This, after last week saw some pressure; although, nothing approaching panic.  On Friday, there were decidedly more decliners than advancers but on light volume.

Advertisement

Market Breadth

NYSE

NASDAQ

Advancing

1,301

1,481

Declining

1,844

2,208

52 Week High

198

257

52 Week Low

2

14

Up Volume

1.10B

1.94B

Down Volume

2.59B

1.92B

 

Watch the VIX this week, which edged higher and continues to remain above the long-term average, even as major equity indices are making new highs.


Hello Tina

There was talk of Tina (there is no alternative) throughout the spring and summer as a reason for the stock market’s strength but flows into mutual funds and exchange traded funds skewed heavily toward bonds – it wasn’t even a contest.

There were signs of stocks becoming more attractive to ETF buyers in September, but bond inflows were three times higher in October.  Then came November, which was a record month for inflows into US equity ETFs.

That trend continues in December as last week’s trends reveal.

  • US equities $4.1 billion
  • US bonds -$448.9 million

ETF Fund Flows

September

October

November

US equites

$11.0

$5.6

$62.0

US bonds

$8.8

$19.0

$11.3

Advertisement

Meanwhile, the ten-year yield is rising again.


Portfolio Approach

We are adding to Consumer Discretionary this morning in the Hotline Model Portfolio.


Today’s Session

If we do get $908.0 billion in fiscal stimulus, look for the market to take off as fear of missing out becomes fear of losing my job among many money managers that have been behind all year long.

Look for more macro nudges from whispers and platitudes on Capitol Hill.  Meanwhile, the market is poised for a big pop higher if a deal really happens.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos