By Bill Hornbarger, Chief Investment Officer
Three Things to Know
- 2020 featured roughly double the historical average of daily moves of 1% or more for the S&P 500. And one out of every 10 days last year featured a 3% plus gain or loss, approximately four times the historical average. (Source: awealthofcommonsense.com)
- The U.S. mortality rate is expected to increase approximately 15% in 2020 when the final data is available. That would be the largest single year percentage increase since 1918. (Source: Fox News)
- The Covid pandemic reduced airline passenger traffic to levels last seen in 1999, according to a new report. “In comparison to last year, passenger traffic is estimated to be down 67% in 2020.” More than 40 airlines completely ceased or suspended operations last year. (Source: CNBC, Cirium)
Three Things to Watch
- On Tuesday, Georgia will conduct a pair of Senate runoff elections to determine which party will control the Senate. The polls and online betting sites have the elections too close to call. Financial markets typically favor gridlock.
- Important economic data will include ISM Manufacturing (Tuesday), factory orders (Wednesday), and the employment report (Friday). All are expected to be positive but indicate the economy lost some momentum toward the end of last year.
- The meeting minutes from the Dec. 16 FOMC meeting will be released on Wednesday. The Fed left rates unchanged and reaffirmed its commitment to asset purchases at that meeting. No change in policy came as the economy was visibly slowing and Covid cases were increasing into year end.
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.