Market Notebook


Global equities pulled back sharply during the last week while bonds moved somewhat lower, remaining within a longer term consolidation range. High yield was an exception, moving below the recent consolidation range.

Excess deaths as measured by the CDC continue to decline in a normally distributed fashion which is good news. Unfortunately, infection rates as measured by suggest little improvement in the rate of infections generally.

Businesses and consumers alike continue to adapt to the COVID induced landscape. Some of the economic damage will likely be long lasting as consumers adjust to online delivery and takeout. Early on during the pandemic I wrote about winners and losers and that theme continues. The changing landscape caused by the pandemic is creating winners and losers. Be careful when adding new positions.

Given the S&P moved decidedly below its 50 day moving average, it is prudent to exercise caution and assume markets will be negatively biased until proven otherwise. Consider that volatility to the downside is a natural feature of markets and such volatility can provide opportunities to pick up assets at favorable prices.

Link to the CDC data:

Bookmark this COVID-19 site.

– Best

Cory Haupt

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