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Market Volatility

Navigating when markets get rough.
CONTENT WITH Market Volatility

Navigating when markets get rough.

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Joe Biden takes the Presidential oath of office this week in the U.S., marking the end of a long U.S. political contest; a year of political challenges is just getting started overseas.
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U.S. stocks have continued to climb amid optimism about a vaccine-led economic recovery, but bad news could easily throw markets off track.
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It has been an extraordinary start to 2021 in the nation’s capital.
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December brought the first payrolls decline since last April; with leisure/hospitality—and women—bearing the brunt of the weakness. Expect more economic “scarring” to come.
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Risk is often the result of a very high degree of confidence among market participants in one specific outcome.
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The Federal Reserve acted as expected; making no changes to policy, but updated its economic projections with a slightly rosier GDP and unemployment outlook.
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The market’s tenor changed in early September, when the “rotation era” began; with the benefit of better breadth, but the risk of euphoric sentiment.
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The planned vaccine rollout is good news that has lifted the stock markets around the world. But the reality of the rollout faces risks that could extend the time frame for mass immunizations.
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Stocks head into 2021 having crossed the COVID chasm; but the economy has more work to do. Will vaccines get us to the other side?
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As 2020 draws to a close, economic momentum is fading with infection rates on the rise, governments responding with more lockdowns, and few prospects for any major near-term fiscal stimulus.

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