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By Bill Hornbarger, Chief Investment Officer

Three things to know

  • Super Bowl LV is expected to be the most wagered on event in U.S. history. PlayUSA forecasts more than $500M in legal wagers will be made compared to about $300M last year. (Source: Seeking Alpha)
  • The Volatility Index fell 44% over the last seven trading days, the second-largest seven-day decline in history. (Source: The Market Ear)
  • The so called Buffet Indicator, that shows the market capitalizations as a percentage of GDP, was at the highest level on record at the end of 2020. (Source: BFE calculations)

Three things to watch

  • A relatively light week for economic data. The focus will be on inflation and inflation expectations. Consumer prices will be released on Wednesday and are expected up 1.5% year-over-year for both core and overall inflation. Friday will feature the University of Michigan Consumer Sentiment report, including both one- and five-year inflation expectations. Both have been trending higher in recent months. One-year expectations were 3% last month, significantly below actual, measured inflation.
  • Investors will keep their eyes on earnings news. Almost 60% of the S&P 500 constituents have reported already and positive surprises account for 81% of reports quarter to date. This week will feature reports from PepsiCo, GM, Disney, and Cisco among others.
  • The coronavirus will remain front and center with continued news on vaccinations and progress on the proposed $1.9 trillion stimulus bill.

 

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.

February 8, 2021 |