Along with a working vaccine, Joe Biden inherited a V-shaped economic recovery, but he is now planting the seeds of its destruction. Inflation, federal deficits, high taxes, incentives for workers to stay home, and incentives to avoid investment – they’re all coming back. Together, these elements create the perfect brew for a Lyndon Johnson-style stagflation. If Biden and the Democrats so quickly wreck the good economic path they were given, it will be one of the worst examples of government malpractice in U.S. economic history.
In the first, dark days of the COVID-19 national economic shutdown last spring, there was a clear need for major stimulus. Both parties united to pass an effective and much-needed response.
Five Reasons To Curb Your Enthusiasm.”
This analysis is interesting, particularly when analysts are rushing to upgrade both economic and earnings estimates.
More importantly, investors are incredibly long-biased in portfolios, with equity allocations reaching some of the highest levels in history.
What Subramanian questions, and something we have asked previously, is all the
“good news” already
“priced in?”
“Amid increasingly euphoric sentiment, lofty valuations, and peak stimulus, we continue to believe the market has overly priced in the good news. We remain bullish the economy
but not the S&P 500. Our technical model, 12-month Price Momentum, has recently turned bearish amid extreme returns over the past year.”
Five Reasons To Curb Your Enthusiasm.”
This analysis is interesting, particularly when analysts are rushing to upgrade both economic and earnings estimates.
More importantly, investors are incredibly long-biased in portfolios, with equity allocations reaching some of the highest levels in history.
What Subramanian questions, and something we have asked previously, is all the
“good news” already
“priced in?”
“Amid increasingly euphoric sentiment, lofty valuations, and peak stimulus, we continue to believe the market has overly priced in the good news. We remain bullish the economy
but not the S&P 500. Our technical model, 12-month Price Momentum, has recently turned bearish amid extreme returns over the past year.”
The rally in value stocks is not yet over, according to a Friday note from Bank of America.
Value stocks have outperformed growth stocks over the past seven months, reversing a decade-long trend as investors anticipate a full reopening of the US economy.
Detailed below are the 10 reasons why the rally in value stocks will continue, according to BofA.
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The outperformance in value stocks relative to growth stocks over the past seven months has been attributed to a number of factors, including but not limited to rising interest rates, growing anticipation of the reopening the US economy, and a wide valuation gap.