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Santa Rally?

Santa Rally?

December 09, 2020
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With the U.S. elections now behind us, what lies ahead for equity markets?  There still remains uncertainty regarding several pivotal U.S. Senate races and it appears that the financial markets have discounted the outcome.

This time of the year has been traditionally good for equity investors.  November, December and January are three of the best month to invest in the equity markets.  Since the election, markets have moved up sharply and the rally is broadening out to several sectors that have not fully participated in the rally since the first of April.

We remain optimistic going into the first half of next year that corporate earnings will continue to improve, interest rates will remain low and employment will begin to normalize in a positive manner.  This will continue to support higher equity prices perhaps not the level we have seen since the beginning of November but more along the lines of historical equity returns.