Quote of the Week
“Cheers to a new year and another chance for us to get it right.” – Oprah Winfrey
Last week was a flat week for the markets. This week has started well, and it looks like the rally should extend into January. We are positioned to take advantage of the “potential” good markets. We shall see. As I have stated before, we and most of the world are in Quad II, which is good for the markets. Our choice in the managed accounts to move to some individual stocks is working out well.
We have an interesting situation in Washington developing. Fortunately for the markets, the President signed the Covid Relief Bill. Unfortunately, he signed it a day late, so everyone who qualifies will lose a week’s benefits. However, this stimulus to the economy should help somewhat to get us over the hump until the vaccine comes to the rescue.
After signing the bill that provides a one-time payment of $600 to most Americans, President Trump has stated he wants the amount for those who qualify to be $2,000 for adults rather than the $600 that was just approved. The House, jumping on board, just passed the $2,000 payment, which they have called the CASH act. Mitch McConnell, the speaker of the Senate, says he will not take up the bill.
The debate has created strange political bedfellows, aligning Trump with his Democratic foes in Congress, who have sought larger stimulus payments for months amid signs that the economy has worsened. Now, many Republicans are starting to come around to the $2,000 payment to not look miserly to their constituents. Everyone is getting into the act. Now, Sen. Bernie Sanders has issued his own ultimatum on Monday, threatening to hold up the chamber unless the Senate can vote on the heightened stimulus payments.
Now here is where it gets really interesting. Trump’s demands are not limited to just larger checks. He wants Section 230 to be repealed and wants the Senate to investigate voter fraud to be part of the bill. Section 230 references a 1996 federal law that broadly indemnifies tech platforms such as Facebook, Twitter, and Google for their users’ actions. Trump has railed against the tech companies as they have started to crack down on his postings alleging voter fraud in the November election.
For the stock market’s sake, I hope that all the “sharks” (on the left and the right) that swim in Washington can get their act together and come up with the extra $1,400. Then we will be really off to the races.
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