Real Vision Daily Briefing - Oct 20, 2020 - Last Leg of the Ride: What 2020 Has Left in Store for Markets

Real Vision

Featuring: Haley Draznin, Ash Bennington, and Thomas Thornton

Ash Bennington joins Thomas Thornton to discuss earnings, stimulus intervention, and investment time horizons.

  • This could be a market that looks closely at quarterly earnings; with economic reports plateauing, earnings may plateau as well.
  • Earnings beats have been stronger but stocks aren’t getting rewarded for those beats, which could be a sign that things are getting priced in, so it’s important to watch for a topping pattern.
  • Q4 typically sees a rebound, but we could see a pullback first and the election could be a catalyst either to the upside or the downside.
  • We’re addicted to stimulus but it will end at some point and the growth in the economy will slow because of all of the debt created.
  • It is extremely difficult to short markets that are being supported by the Fed, so investors would do well to play the ebbs and flows and take advantage of the 10% pullbacks and lifts and sector rotation.
  • We’re seeing a bit of a rotation back to some value as financials and energy have picked up.
  • A Biden win could actually be positive for the energy sector as he’d likely impose new restrictions on drilling, which would limit the glut of supply we have now and raise prices.

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