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Both global equities and bonds tracked higher last week. BND, the Vanguard Total Bond Market ETF closed above the 20 day Exponential Moving Average and 50 day Simple Moving Average, potentially snapping the down trend.
The U.S. Presidential election has concluded with an apparent winner thus resolving many of the unknowns for market participants. It appears as though the Democrats will control the White House and the House of Representatives and the Republicans may control the Senate. Despite the rhetoric from both political parties, a mixed government can be good for equity markets. Time will tell.
Recent excess deaths as measured by the CDC appear flat, however, the data lags infection data. Flat excess deaths in the face of increasing infection data would be a small bright spot.
The theme of winners and losers continues. A realignment of politicians in Washington combined with the potential for new measures to control COVID will further cement the wedge between winners and losers as the landscape continues to change.
In the coming week or weeks, expect negotiations resume on a stimulus package. The lead up to an agreement on a stimulus package could be positive for equity markets.
Link to the CDC data: https://www.cdc.gov/nchs/nvss/vsrr/covid19/excess_deaths.htm#dashboard
Bookmark this COVID-19 site. https://rt.live
– Best
Cory Haupt
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