In today\u2019s Steady\nInvestor, we look at key factors that we believe are currently impacting the\nmarket, such as:<\/p>\n\n\n\n
Stock Market Soars\nAmid Election Uncertainty \u2013 <\/strong>The U.S. stock market has defied expectations, and\ngravity, for just about all of 2020. The S&P 500 hit its bear market bottom\non March 18, 2020, when forecasts for unemployment were north of 20% and GDP\nwas set to contract by -30%.1<\/sup> Corporate earnings were also expected\nto post severe drops, and we knew very little about how long the pandemic would\npersist. Fear was at a crescendo. Then stocks went up. Way up. <\/em>Indeed, in this bull-bear cycle, the S&P 500 took only\n126 trading sessions to post a full recovery. The previous record for a bear\nmarket recovery was set in 1966-1967, when it took 301 days for the market to\nrecover. Since 1928, it has taken an average of six years for the stock market\nto recapture all-time highs.2<\/sup> The stock market defied expectations,\nand as is very often the case, investor patience during a very turbulent and\nuncertain period was rewarded. Enter the election, where the S&P 500 has\ndefied expectations of wild swings and instead has pushed convincingly higher\neven as the outcome hangs in the balance. Investors appear to be betting on a\ndivided government, which would mean a falling likelihood of sweeping tax\nreform (higher corporate taxes) and major new regulations on big technology\ncompanies. Even still, the likelihood of fiscal stimulus seems all but assured,\nnot matter what the presidential outcome. <\/p>\n\n\n\n ______________________________________________________________________<\/p>\n\n\n\n How to Navigate the Market During This Election and Pandemic?<\/a><\/strong><\/p>\n\n\n\n With most investor’s attention focused on the\nelection outcome, many may take for granted just how critical the vaccine is to\na full economic recovery. A lot can go right, but a lot can also go wrong \u2013\nwill the vaccine be effective, will the rollout be smooth, will enough shots be\navailable, will enough Americans take it?<\/p>\n\n\n\n To help you get answers to these questions and\nmore, we have created our just-released November Market Strategy Report. In\nthis report, we look at companies working on the vaccine and antibody\nmedicines. You will also see our analysis on the major companies involved, with\nZacks stock ratings included in our commentary. <\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more about the impact a vaccine could have on the market, click on the link below to get your free report today! ______________________________________________________________________<\/p>\n\n\n\n Trickling Improvement in the Labor Market \u2013 <\/strong>The number of Americans applying for unemployment continues to hit 700,000+ per week, which actually marks an improvement from previous weeks and signals the labor market is improving, albeit very modestly.4<\/sup> The key with initial jobless claims, historically, is that it continues to trend down from its recession peak. Markets have historically bottomed around the time that initial jobless claims peak, which also applied to 2020\u2019s pandemic-induced recession. The labor market is improving and the economy is growing again, but a major headwind may be returning \u2013 Covid-19. Daily cases have topped 100,000 for the first time ever, and with cold weather on the way, Americans will be forced indoors \u2013 where the virus can spread more easily. Small businesses that have been making do with outdoor dining and socially-distanced indoor dining are likely to face major challenges to growth. The potential upshot, however, is that a stimulus package is almost certainly on the way. It\u2019s just unclear when. <\/p>\n\n\n\n Silver Linings in\nServices and Manufacturing \u2013 <\/strong>Services and manufacturing are key indicators\nfor the U.S. economy, and purchasing managers indices for both posted\nimprovement in October \u2013 a good sign. On the manufacturing side, U.S. factories\nreported a sharp rise in new orders as business inventories shrank, which\nspurred manufacturers to increase hiring for the first time in over a year. The\nInstitute for Supply Management, which runs the survey, stated that sentiment\namong manufacturers was very strong. On the services side, continued growth in\nactivity was reported in October as businesses in health care, hospitality,\nreal estate, and dining all showed strong activity for the month. The index\nreading for services came in above 50 for the fourth straight month, and was\naccompanied by expansionary readings across Europe and Asia. <\/p>\n\n\n\n A Look at Covid-19 Vaccine Development<\/strong> – With\ninvestor attention focused on the election outcome, many may take for granted\njust how critical the vaccine is to a full economic recovery. A lot can go\nright, but a lot can also go wrong \u2013 will the vaccine be effective, will the\nrollout be smooth, will enough shots be available, will enough Americans take\nit?<\/p>\n\n\n\n To help you get answers to these questions and\nmore, we have created our just-released November Market Strategy Report. In\nthis report, we look at companies working on the vaccine and antibody\nmedicines. You will see our analysis on the major companies involved, with\nZacks stock ratings included in our commentary. We will look at:<\/p>\n\n\n\n This report dives into what a vaccine could mean for economic recovery. If you have $500,000 or more to invest and want to learn more, click on the link below to get your free report today! Stocks rise with election relief (even if it\u2019s still undecided), economic growth faces Covid-19 headwind<\/p>\n","protected":false},"author":3,"featured_media":7426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-9010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9010","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=9010"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9010\/revisions"}],"predecessor-version":[{"id":10511,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9010\/revisions\/10511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a>Download Our Just-Released November Market Strategy Report<\/a>3<\/a><\/sup><\/strong><\/p>\n\n\n\n
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