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Week of December 21, 2020 Thumbnail

Week of December 21, 2020


We hope you are doing well and staying safe during this holiday season.  Here a few takeaways from last week's market news.

  • Last week stocks looked past some worrying data on initial jobless claims that indicated slowing  momentum in the jobs market, and continued to look ahead to a recovering economy in 2021. 
  • Retail goods had a very strong year in 2020 in a bifurcated economy where the services economy suffered terribly, with travel, entertainment and leisure industries shut down for much of the year.  We are beginning to  hear some common themes emerging around a strong recovery in the services industry in 2020, as pent up savings is unleashed as people begin to return to their normal lives. 
  • We are also beginning to hear with more frequency talk of a much different and stronger economic recovery as we exit this recession vs. the slow growth experienced coming out of the recession following the 2008 global financial crisis.  The recovery will be global, with worldwide GDP estimated to climb 5.2% in 2021 on a consensus estimate, after falling 3.2% this year. 
  • Finally, as we write this note, it looks like the final roadblock to a stimulus bill may have been removed, providing the bridge to allow the markets to look ahead to 2021 and an improving global economy and stronger corporate earnings.  Hopefully we will  have a vote today, Sunday. 

Our full recap of last week’s events is linked below.

We would like to extend our best wishes for a safe and happy holiday season and a happy new year!  

The FMA Advisory Team


Market Insights - December 18, 2020

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