Merch Store

Given the fierce move by equities in the past few weeks, it is not entirely surprising to see stocks consolidate over the last few days.  And not surprisingly, there are more than a few who believe markets have become overly exuberant.  To an extent, I understand this. There has been both a sizable move in markets coupled with a sizable rotation into epicenter stocks. However, I still see upside into year end. More on this below.

On the COVID-19 front, daily cases came in at 181,547 on Thursday, and Wave 3 remains on the rise. And although the daily change vs 7D ago, which is the key leading indicator we track, dipped below 20,000 on Wednesday, it jumped again on Thursday to 32,824.

And daily deaths from COVID-19 in wave 3 are now meaningfully higher than the death toll seen in wave 2 and are only 27% below the peaks in Wave 1. Given daily cases are almost four times the magnitude of wave 1 and are a leading indicator of mortalities, we should expect daily deaths from COVID to surge in the coming weeks.

But it is worth mentioning that in just the past few weeks, we have witnessed advances in the treatment and prevention of COVID-19. While we are not yet seeing this in reduced cases or mortality, these collectively should slow the scourge of COVID-19 and ev...

Unlock this article with a FREE 30-Day Trial!

No Credit Card Required! Limited time only!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)
;
3/3
You have reached the maximum amount of complimentary reports for this month.
You will receive 3 more complimentary reports as of the 1st of July.
or
FS Insight Guest PASS

Unlock 2 more articles by joining our newsletter!

Take Your Investing to the Next Level with our Award Winning Research!

Want to receive Regular Market Updates to your Inbox?

I am your default error :)