Week of October 26, 2020

Greetings,

We hope this note finds you and your family doing well and staying safe. Here's a look at this week's highlights:

• A second round COVID relief stimulus package remains a matter of when, and not if.  Current market levels appear to be pricing in a fair amount of stimulus.  Yet, a sizeable relief package should provide the bridge to the weakest segments of the economy that have been hit especially hard by COVID. 
• Could a second round of stimulus create the economic bridge needed to cement a new bull market in stocks?  As we emerge from the July cratering of GDP, it is becoming more likely that Wall Street economists will look back to March as the end of the prior bull market and the beginning of a new bull run, with the recession likely having ended in July with the bottoming of GDP.  Of course, new bull runs come with all the volatility of 10%+ corrections along the way. 
• Earnings season continues.  Thus far, 84% of companies have reported earnings beating estimates.  That is the highest level since 2008--good news.  The bad news?  We are still seeing estimates from many companies that are not expecting to get back to 2019 earnings levels until 2022 or later. 

View our full recap of this week's events in the link below.

Please let us know if you would like to schedule a call or in office visit to review your portfolio and cash flow plan.

The FMA Advisory Team

717-232-8850