We are seeing rates on bonds increasing in response to rising concerns about inflation coming our way. This trend will benefit some sectors and markets around the world while punishing others.
We are seeing markets holding up well on the outlook for more stimulus.2 We are also seeing our new FED chair, Janet Yellen, take a supportive stance on the stimulus and its impact on our recovery.1 At present, we are seeing more tailwinds than headwinds for 2021, but we’re not losing sight of the possibility of a correction in the NASDAQ and S&P 500, which would certainly be in line and possibly overdue.
Our opinion of 2021 is that the markets should produce a beneficial year in Equities. Of course, it will spend some days going down followed by days going up, but when examining the year in total, we should see more up days than down days.
This is a brief statement from us to you in an attempt to prove additional personal touch and help you with critical and time-sensitive decisions as it pertains to your investments and financial health.
On Monday, the markets were seen struggling with the rotation trade we were talking about from Technology to other parts of the markets, or at least that is the narrative. We have political tensions that have escalated in the media and at dinner tables, but it hasn't really phased Wall Street as of yet.