In a recent conference call, Canaccord’s Tony Dwyer ably summarized the current market situation in a single graph:
According to Dwyer, the market remains in a no-man’s-land between unprecedented economic events and unprecedented fiscal and monetary stimulus.
In this “frustration” phase, we remain focused on our task at hand. Put simply, the current crisis, its aftermath, and the ramifications of the fiscal and monetary efforts to combat it, are creating profound changes in business conditions, consumer habits, and technological and social trends. These changes will result in significant changes of fortune for countries, economic sectors, industries, and individual companies. The longer-term effects will likely change how investors should think about larger asset-level allocation decisions.
Earnings season is underway, so we have our antennas up, not just to listen to the experiences of companies during the pandemic thus far, but for what their earnings commentary may reveal about the new emerging trends, so that we can be ready to take advantage of the shifts for our clients.
We look forward to hearing that you are staying safe and healthy, and taking good care of yourself and your loved ones.
Thanks for listening; as always, we welcome your calls and questions.
