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<\/figure>\n\n\n\nThere is no\ndoubt a long road ahead for a full economic recovery, but in my view, the\neconomy is on it \u2013 and the election is not likely to reverse these gains. <\/p>\n\n\n\n
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In Times Like These, Focusing on Data and Not Media Hysteria is Key!<\/a><\/strong> 2020 is more than half way over, and it has been a chaotic year of events to say the least. Still, there is money to be made. So instead of focusing on the \u201cwhat if\u2019s\u201d that saturate the media, I recommend staying calm and focusing on the fundamentals. To help you do this, I am offering all readers our just-released Stock Market Outlook report. This report contains some of our key forecasts to consider such as:<\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today! _________________________________________________________________________<\/p>\n\n\n\n One\nunderappreciated factor in the economic recovery, in my view, is the greater\nunderstanding we now have of the virus and the pandemic. The daily infection\nrate has held fairly steady \u2013 and fairly high \u2013 for months, but the lower\nincidence of deaths may help explain the relatively muted market response to\nrising infections. I also believe the U.S. health system has seen significant\nimprovement in its ability to handle and treat cases, which lowers the risk of\nanother round of lockdowns. <\/p>\n\n\n\n Many see additional fiscal stimulus as\nan \u2018x-factor\u2019 in the recovery. Should Congress and the White House remain at an\nimpasse over more stimulus, many of temporary job losses could turn permanent,\nwhich would in effect turn event-driven losses into cyclical ones. I too see\nthis as a risk, but only in terms of prolonging the recovery \u2013 not reversing\nit. <\/p>\n\n\n\n For the Federal Reserve\u2019s part, we know the central bank is\nnow willing to let inflation overshoot its targets in an effort to push\nunemployment back to its maximum level. 17 Fed officials said they believed\nrates would stay near zero until at least the end of 2021, with 13 officials\npushing the date further out to 2023. The Federal Reserve has essentially\ncodified \u2018lower for longer\u2019 interest rates, which should support the recovery\nin the coming years.4<\/sup> <\/p>\n\n\n\n Q3 earnings season is now underway, and while total\nS&P 500 earnings are expected to decline -22.3% on -2.9% lower revenues, it\nis a marked improvement from the -26.5% earnings decline expected at the start\nof July and the -32.3% earnings drop in Q2. Banks kicked off earnings season,\nand what we are seeing are banks largely in good fundamental health. Insofar as\nbanks are a proxy for the economy\u2019s health, the outlook for growth is likely\nbetter than most think.<\/p>\n\n\n\n Most sectors will again show steep drops in earnings in Q3,\nbut investors should note the earnings declines are likely to be less dramatic\nthan Q2; expectations are for an average -21% decline, versus the -31%\ncontraction of Q2, when coronavirus-linked lockdowns decimated economic\nactivity.5<\/sup> Overall, this earnings season is expected to show\ncontinued improvement in the overall outlook, a trend that has been in place\nsince early July and has been showing up in steadily rising earnings estimates.<\/p>\n\n\n\n Bottom Line for Investors<\/strong><\/p>\n\n\n\n Investors should remember that economic recessions end when\nthe economy begins to grow \u2013 even if the growth is only a trickle at first. At\nthis stage, in my view, the biggest risk to the economic recovery is another\nround of lockdowns \u2013 the likelihood of which is very low. We know enough about\nthe virus, and the health system is robust enough, to avoid shutting the\neconomy down completely. <\/p>\n\n\n\n Another round of stimulus is likely needed to bridge many\nAmericans to normal life after the pandemic, which could be several months\naway. While I expect market volatility as stimulus talks drag on, I do not\nthink the economy will slip back into recession without a large stimulus\npackage. What we might see instead is a prolonging of the economic recovery,\nbut not a reversal of gains made to date. <\/p>\n\n\n\n This is why it\u2019s important to look at the whole picture and have a diversified approach to your portfolio. To help you do this, I am offering all readers our\u00a0<\/a>Just-Released November 2020 Stock Market Outlook Report.<\/a>\u00a0<\/strong> If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today!6<\/sup><\/p>\n","protected":false},"excerpt":{"rendered":" With questions about more stimulus and the election looming, investors fear a backslide into recession <\/p>\n","protected":false},"author":3,"featured_media":8874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,71],"tags":[],"class_list":["post-8923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitch-on-the-markets","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=8923"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8923\/revisions"}],"predecessor-version":[{"id":10528,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8923\/revisions\/10528"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=8923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=8923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=8923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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<\/a>IT’S FREE. Download the Just-Released November 2020 Stock Market Outlook<\/a>3<\/a><\/sup><\/strong><\/p>\n\n\n\n
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This report looks at several factors that are producing 2020 optimism right now and contains some of our key forecasts to consider such as:<\/p>\n\n\n\n