Business & Investment

If 2020 was the year to buy rumors, maybe 2021 is the time to sell news, “says veteran newsletter writer.

It wasn’t a great start to the new year. S & P 500
SPX,
-1.48%

It plummeted 1.5% to start the 2021 trading year, the worst day decline since October 28th.

Maybe one day it represents a trend.Veteran newsletter writer, Kirk Spano Basic trends, “We will buy rumors in 2020 and sell news in 2021.”

Even with zero interest rates in mind, stocks need time to catch up with valuations, he says. “It’s literally cheaper to start a company today than to buy one. This may explain all the SPACs,” he said, referring to a special-purpose acquisition company whose demand surged last year.

“Imagine a world without the massive liquidity injections of the COVID-19 and the Fed. 2020 could have been a very volatile year. Now, sudden valuations are even higher and the economy Will suffer permanent damage and will require a long rebuilding period, “he says.

Spano anticipates a volatile year with an S & P 500 reaching 4,000. This is what he calls a “glossy round numbered object”, but the exponent also drops below 3,000. In addition to the consolidation, the market also needs to separate struggling zombies, companies that cannot cover debt repayment costs from profits that can account for up to 40% of the S & P 500.

The Georgia Senate competition could lead to the first decline if the Democratic Party wipes out, as investors begin to impose high taxes on the wealthy. But he says, increased investment in infrastructure, education and healthcare will make the economy and stocks higher in that scenario.

He also says bitcoin
BTCUSD,
+ 2.76%

Susceptible to strict regulations from Treasury Secretary Janet Yellen. “I don’t think governments or central banks destroy, or shouldn’t, or can’t destroy Bitcoin, but they can make life very difficult and cheap,” he says. .. There is also competition from the digital dollar, euro and yen with the support of the central bank. (Late Monday, The Office of the Comptroller of the Currency said US institutions can use so-called stable coins in their payment activities and participate as a node in the blockchain.)

Buzz

The state of Georgia will hold an election of two Senate seats, which will determine control of the US Senate. Analysts warn that close combat may not be called for days.

Coronavirus conditions in the US and Europe continue to deteriorate, with the UK expected to lock down until mid-February and Germany shut down until the end of January. According to the COVID-19 tracking project, the United States has set hospitalization records at 128,210, although it looks like every day for the past three months. By Monday, the United States had inoculated 4.56 million people, according to the US Centers for Disease Control and Prevention. That’s 22% of people with this disease.

German biotechnology company BioNTech
BNTX,
+ 5.16%

Joined partner US pharmaceutical company Pfizer
PFE,

Germany is considering a move made by the United Kingdom, saying there is no evidence that delaying the second dose of the coronavirus vaccine would be effective for more than three weeks, but the US Food and Drug Administration resisted.There is also concern that the vaccine will not work The so-called South African variant of the virus..

New York Stock Exchange, a division of the Intercontinental Exchange
ice,
-1.73%
,
Overturned decision to exclude three Chinese telecommunications companies, Including China Mobile
CHL,
-5.89%
..

The Supply Chain Management Association will release its December manufacturing report at 10 am EST. Loretta Mester, president of the Federal Reserve Bank of Cleveland, said after the market was closed There is no need to change that monetary policy.

market

US Stock Futures
ES00,
-0.07%

NQ00,
-0.07%

Fine-tuned higher in early action.gold
GCF21,
+ 0.34%

Oil futures have also risen
CL.1,
+ 1.81%
..

U.S. dollar
DXY,
-0.26%

Drift drops, 10-year government bond yield
TMUBMUSD10Y,
0.933%

It was 0.93%.

chart

Dallas Fed Oil and gas companies surveyed in the area On a variety of topics, including where oil prices are expected to end at the end of the year (between $ 45 and $ 55) and capital investment plans. One prominent table is the lack of environmental commitment, despite investor pressure in this area. Even the largest companies that produce at least 10,000 barrels a day have only half the plans to reduce carbon dioxide emissions.

According to another report from Bank of America, institutional investors saw the oil and gas sector as the greatest opportunity to improve environmental, social and governance issues.

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If 2020 was the year to buy rumors, maybe 2021 is the time to sell news, “says veteran newsletter writer.

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D1CD735FCB90%7D&siteid=rss&rss=1 If 2020 was the year to buy rumors, maybe 2021 is the time to sell news, “says veteran newsletter writer.

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