“Investors should be preparing for inflation, not this recovering economy.“– Paul Ebeling
The US and the been through a profound economic shock with the China ‘Act of War’ virus, but everything every policy-making body in the US is doing is inflationary it is designed to be inflationary.
More Aid/Relief/Stimulus means a weaker USD and no stimulus means a stronger USD because it’s risk off. Lower interest rates will be bad news for the financials and bank stocks. The most cyclical stocks will suffer the most. The sectors that will do the best would be utilities and consumer staples and anything in big tech having utility-like characteristics.
US stocks rose Friday to cap weekly gainers as investors monitored the prospects for another round of fiscal stimulus from Congress.
The S&P 500 SPX, 0.88% rose 0.9% at 3,477.13. The DJIA, 0.57% advanced 161.39 pts, or 0.6%, at 28,586.90, the NAS Comp COMP, 1.39% gained 1.4% at end at 11,579.94.
For the week, the S&P 500 was up 3.8%, the DJIA rose 3.3%, and the NAS Comp climbed 4.6%. The S&P 500 and NAS Comp enjoyed their best wk since July, while the DJIA had its biggest wkly gainer since August.
Next week we have a heavy schedule of US economic data, including the CPI several readings on manufacturing, including the Fed’s industrial production report, and retail sales figures for September.
Have a healthy Holiday weekend, Keep the Faith!