Guggenheim: Equity Market Views: September 2020
Guggenheim recently released its September 2020 Equity Market Views. Topics include:
After finding a bottom in late-March, the S&P 500® Index has now posted gains for five consecutive months and recently returned to new all-time highs.1 Driving the upside has been the ongoing recovery in the economy, the better than feared second quarter earnings season, and progress towards a COVID vaccine. A shift in strategy by the Federal Reserve (Fed) to be more flexible regarding inflation levels added to the positive sentiment.
On the Radar— November: Presidential Election
Before getting into specific implications of the election, it’s prudent to understand the predictive value of the stock market and economy for the executive branch. First, stocks usually begin to sell off prior to opposition party winning the election. With the S&P 500 index recently reaching all-time highs, investors have indicated little concern so far about disruption of the opposition party taking office but again, there’s a few months until the election. One should not ignore how unusual this year has been and the effect on historic anomalies—for example, three stocks have captured nearly the entire return of the market this year.
To read the full Guggenheim September 2020 Equity Market Review and read the full paper including UIT Investment Implications, please click on the link below:
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