Market Likely to Drift Higher

Without more bad news to drive markets lower, then the tendency to drift higher will persist.


Market Movements as of New York Close 15 Oct 2020


Thematic Context: “Expect political headlines & stimulus saga to drive risk appetite in the week ahead. As Trump hits the trails, we expect nothing short of fireworks, brash statements and wild gyrations in the stimulus narrative. As we have said before, he is not one to head into the elections with a beaten down stock market.” — 12th Oct 2020

Thematic Context: “The vacancy is adding uncertainty in an already uncertain environment. But it may raise the odds of a Democratic sweep in the election, which could clear the way for a bigger stimulus package afterward to fight economic impacts of the coronavirus.” — 22nd Sep 2020

Thematic Context: “Breaking up big tech dominance is good for domestic tech companies, but bad for the “behemoths” we have gotten so comfortable with i.e. Apple, Amazon, Google etc. In the push for deglobalization, a theme we have been harping on since early 2020, tech will not be spared in a real Sputnik race and it seems the threat is on the fringes of materializing. This can potentially be bad for risk-sentiment as “Big Tech” were the main components leading the rebound in risk appetite. There is no shame in taking some chips off the table during this period, especially into the tumultuous months of heightened volatility ahead.” — 19th Sep 2020



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