Happy Friday the 13th! Seems fitting given the year and last few weeks we have all endured. Although our holidays will look and feel slightly different from years past, I for one am excited for the prospects of a more joyous and festive tone on all fronts. Let’s hope this is the case!
What a week we have had. The most promising vaccine news yet came from Pfizer even as the number of positive cases continues to rise. This is welcome news and the markets responded accordingly with an 800+ point gain in the DJIA on Monday. We continued to see a more moderate move higher as the week progressed but there has been some selling pressure in the tech sector and the “work from home” stocks specifically. These investments have performed very well since the pandemic began so it would seem natural to see some profit taking given the vaccine news.
We are also now seeing several states, including Maryland, return to some additional restrictions as the positivity rates have increased. While I don’t believe we will return to a full “lockdown” like we were in earlier this year, it is clear, that cautionary steps are being taken. I believe many people are expecting our President-Elect to issue a nationwide mask mandate to help control the spread as the new administration seeks to get the virus under control during the upcoming winter months. While it may still take some time to have a “final” resolution on the Presidency, the stock market and economy are already showing us the predicted conclusion. As we have discussed previously, a divided government is the most market friendly and it appears this will be the ultimate outcome. While some things will certainly change, the main areas of concern around the financial markets were the potential changes to our current tax and capital gain structures. It seems highly unlikely that anything will change on those issues, at least for the next 2 years. We will still need to get more clarity before we can fully move forward, but for now, there is a sense of calm. This is a good thing!
Stay safe and healthy!
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