Towards a Winter of Discontent
With the U.S. election in 18-days, the expectation is that most investors will turn defensive unless there is a breakthrough on the stimulus front. In lieu of a fiscal package, the economy (not the markets) could reach a breaking point in late Q4 or early Q1. Meanwhile, market performance continues to be driven by central bank intervention rather, and this is skewing asset prices across the board. While the outcome of the U.S. election unlikely to alter the Fed’s approach, it has the potential to affect sentiment.
THE 375 PARK COVID MODEL CURRENTLY FORECASTS >12MN CASES AND A cCFR of 2.5% IN THE U.S. BY THE END OF THE YEAR.