What Happened In the Week Ended September 18, 2020:
The stock market made good gains in the earlier part of the week as macroeconomic prints continued to show that the economy was recovering, albeit at a slower pace. The Citi Economic Surprise index showed data coming ahead of expectations. The week was marked with rising retail sales, industrial production, consumer sentiment and leading economic indicators. The Atlanta Fed’s GDPNow model (saar) estimate for GDP growth in the 3rd quarter of 2020 ticked up again this week to 32.0%. On July 27, the estimate was only 12%. The September zeitgeist as revealed by the latest edition of BofA’s Global Fund Manager survey, showed that 58% of respondents believed that we are currently in a bull market compared to only 25% in May, 37% in June, 40% in July, and 46% in August. While the survey suggests that the economy has not escaped velocity, it insisted that the economy was in an early-cycle phase.
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By Hubert Marleau
By Hubert Marleau