Market update 1/21/2021

(07:21 AM)

The market futures are up slightly and it's looking like we will continue yesterday's little rally. We are entering a honeymoon phase with the new President and things seemingly could not be better if it wasn't for COVID-19. The Biden Administration is eager to improve the vaccine rollout and a Democratic House and Senate should be set and sold on another round of stimulus checks, likely $1,400.

We also just kicked off earnings season and Goldman, P&G, and Netflix have already shown that things can be much better than expected. Companies are beginning to give guidance again and positive guidance at that! Being on the lookout for new areas of the market that might see some more attention is key at this moment. Healthcare, Industrials, and Infrastructure come to mind.

I am bullish at the moment and think many underlying conditions support that view. Unemployment is high and COVID cases are at a record, yes, but in my opinion, these things don't present a long-term hindrance for the market to go up. There is always a short-term risk for a steep drop and I would very much welcome it so I can put my cash position to work because currently, every general pullback has turned out to have been a buying opportunity.

Thanks,

The Punkrock Capitalist