Logistics Need Not Apply…Stocks have made their choice and they choose hope (today). US manufacturing rising for the first time in 4 months certainly helps. As does the unprecedented levels of Fed stimulus, record low bond yields and the largest S&P tech names benefitting from the effects of COVID (FANG +1.4% today, Pharma -1.4% on disappointing Gilead remdesivir results). However, stocks are going to face a multitude of uncertainty into the back half of 2020. Sadly, the worst outbreak of social unrest in decades will be one major factor. Quarantine may have loosened a bit, but new curfews are being imposed and the Nation’s Guard is required to stand watch with Trump urging “domination” of protestors. Further, The US election could be frightfully racially charged. Also, the aforementioned protests could very well spark the second wave of coronavirus. Let’s put it this way--- The US was already being tested by its first impeachment since 1998, the worst pandemic since 1918 and the toughest economic conditions since the Great Depression (CNN). Now, social unrest is added to that list. And we haven’t even touched China.
The content on this site is available to all Redburn clients as part of Redburn Execution’s standard service. It is not considered substantive research and there are no commercial implications to viewing these pages.
Please enter your email address below to view this page. If you are still unable to access the page, please speak to your account manager.