It seems every week brings news, and during this difficult period, it is not a bad idea to check in more frequently.
We have mentioned Mohamed El-Erian before. We do not believe anyone has a crystal ball and can tell us what is coming next, but some people think carefully and have interesting and useful insights.
Tuesday morning before the market opened futures were up sharply on the news of another vaccine in development and some success in the reopening process. Mr. El-Erian was candid enough to acknowledge that he had been overly cautious and was now seeing things as better than expected. Pithy and worth a listen on CNBC here.
As the economy reopens and the perception of risk slowly diminishes, we are also seeing value and small stocks making a comeback over the past week or so. The dominance of the Big Five FAAAM stocks (Facebook, Apple, Amazon, etc) isn’t over yet, but no one rings a bell at major turning points in the market.
By the way, we are hearing a lot these days about people who are upset and confused about the world and the markets and their finances. One thing we have been doing is making our planners available to talk to people who need to talk. If someone needs to talk please feel free to let us know. These are difficult times for many, we are willing to help if we can.
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