More free money!!!
That's what investors are hoping for this afternoon as the Fed winds up their 2-day meeting and we'll have their rate decision at 2pm. It's up to the Fed to save Christmas as we don't even have a President yet, with Joe Biden leading Donald Trump 253 Electoral Votes to 214. You need 270 to win and Biden seems to have Arizona (11) locked up but only an 8,000-vote lead in Nevada (6) and Biden is 18,000 votes benind in Georgia (16), 77,000 behind in North Carolina (15) and 164,000 behind in Pennsylvania (20). So Biden can win any two states to win and Trump is in big trouble, basically.
Especially as late voting, which is either mail-in voting or big city voting, strongly favors Joe Biden. This is why Trump supporters are protesting to "stop the count" around the country. Having every vote counted is something Democracies do – this is America!
We've had a spectacular 260-point (8%) move in the past 5 days on the S&P 500. A 10% run would have taken us to the 25% line at 3,564 and we still might get there as the Futures are indicating 3,500 this morning and that's "only" up 1.6% so why not keep going – it's only money….
102,831 Americans were infected with Covid-19 yesteday in a dangerously uptrending graph that does not bode will for Biden's first term in office. Unfortunately, it looks like Biden will be saddled with a Republican Senate so it will be difficult to make the kind of major changes that are required to get things under control and, of course, Biden doesn't take over until January 20th, when we could be looking at 200,000 new cases per day.
Already there are states that are spiking completely out of control, mostly in the northern US, where the cold weather is creating an envrionment in which the virus spreads faster. If this happens in the Northeast as the weather turns colder – we may have a serious National Catastrophe on our hands.
Be careful out there!