THE POST ELECTION STOCK MARKET RALLY:
THE POST ELECTION STOCK MARKET RALLY:
We will see the stocks jump quite precipitously this week as the relief and exuberance take hold. This is to be expected after such a long and severe battle. This should be viewed as what it is – a street party with all the shouting and tumult as America begins to regain its footing. The whole world is going to respond to our election in a similar way. Markets will jump in Asia and Europe as well. While many are just happy that the contest is finally over and we can get back to doing business as usual, many others are glad to see the end of the Trump administration with its conflicting and erratic economic policies.
But it should not be considered the beginning of a bull market that will exude long lasting confidence or immediately result to end of our recession. We are still in very deep waters with the pandemic raging into uncharted territory and the continued financial troubles many Americans are still feeling.
I believe that a stimulus package will be worked out. I somehow doubt that will happen before Mr. Biden moves into the West Wing on January 20th, but it’s possible that the House and the Senate will come to terms on an interim relief bill that will at least address the immediate distress that would otherwise result in massive evictions, hunger and health issues. So I’m hopeful that we may see this rally last a few weeks and checks being sent to millions soon.
But realize that the problems are much deeper than that and it will take some major legislation, as well as a working vaccine and a serious dip in Covid-19 cases to lead to any lasting economic results. My hopes are clearly for a quicker recovery. But my common sense, years of work in the financial markets, and my astrology tell me that you should be cautious and prepared for a deep market dip around February. How bad it is and how long it lasts may have much to do with the senate races in Georgia, Mitch McConnell, Biden’s assertiveness in his first 100 days, and the will of the people to get past this election and begin to look at their future as a common goal and not as a contest between the two parties.
So for now, congratulations Joe Biden and America. The election ran smoothly and we have moved on to the next phased of our development. Enjoy the exuberance and the great numbers you will see in your 401K. 😀🙏❤️
A co-worker just told me that she read that some woman in the trump regime who is supposed to sign a letter allowing the transition team to start work (getting money, government email addresses etc). refuses to sign it!!! Their spiteful childish cruelty is mind numbing and of course it is the people who will suffer. I wonder if Biden’s team can go to court to either bypass this b—h or force her to sign it.