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COVID-19 UPDATE: US cases still rising and hospitalizations surge, so wave 3 still strong. Cyclical rally is a glimpse of a post-COVID world

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STRATEGY: Cyclicals are gaining favor in marketsCyclical stocks rallied strongly yesterday, a reaction to multiple positives on the healthcare front:- Moderna vaccine candidate >94% effectiveness, exceeding that of the Pfizer drug- Good news on Olumiant (see comment yesterday)And yesterday's market reaction is a glimpse of how investors will be positioned, when the world is able to vanquish COVID-19.  At the moment, no country has achieved durable herd immunity, but several have managed to contain the virus.  That is, several countries have successfully prevented the spread sufficiently, that they are essentially disease free.  The most notable examples are China, Taiwan, Australia, but many Southeast Asian nations have reduced cases to zero.  This is not the case in the Western world.  Europe is starting to see cases rollover, stemming from renewed lockdowns.As for the US, daily cases are rising at >35,000 per day (vs. 7 days ago) and at this pace, the US will see >200,000 cases before Thanksgiving.  We are watching trends carefully, particularly in wave 3 states, led by WI, IL, ID, ND, SD, UT, or WIINSU, but these are only the states with the fastest case growth.  The entire US is seeing cases ...

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