October 6, 2020 | An L-Shaped Recovery in Our Future?

Let’s see if The Bull Market That Wouldn’t Die can shrug this one off. Trump postponed stimulus talks until at least after the election, causing a 600-point reversal in the Dow Industrials. With no stimulus in sight, all of those would-be dollars from the sky won’t get spent by holiday shoppers. They are usually unstoppable themselves, although 2020 has seemed likely to produce, from the standpoint of retailers, a k-shaped Christmas. That’s when pandemic-proof upper-middle-class shoppers go all-in on Patek Philippe wristwatches and goose-down comforters while most Americans have to settle for Kohl’s gift cards. If stocks plunge in October, that could flatten the shopping curve somewhat, ringing in the New Year with an L-shaped recovery.
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Rick Ackerman October 6th, 2020
Posted In: Rick's Picks