The Profitable Move to Make as We Wait Around for Stimulus
October 07, 2020 at 05:00 AM EDT
The market's big struggle right now, its driving narrative, is between COVID-19 and the prospects of a new, multitrillion-dollar round of stimulus. Stocks have rebounded over the past two days, after an apparent improvement in the president's COVID-19 symptoms merited his discharge from Walter Reed National Military Medical Center. On the coronavirus front, investors seem to have digested the bigger picture: The virus remains a severe threat and a major disruptor, but death rates are declining right now, better therapeutics are available, and several vaccine candidates are on the horizon. Against this backdrop, we've seen no convincing signs of progress in House Speaker Nancy Pelosi's and Treasury Secretary Steven Mnuchin's negotiations over a fresh multitrillion-dollar round of stimulus. The rally lost some significant "steam" on Tuesday after U.S. Federal Reserve Chair Jerome Powell and Speaker Pelosi stressed the need for fresh stimulus, then began a much steeper dive minutes after Trump said negotiations were off until after the November election. White House-watchers and Wall Street insiders opined that Trump's abrupt move was likely a negotiating tactic, not the end of the stimulus road. That's established the pattern investors will have to contend with: pullbacks, driven by stimulus worries, will be promptly followed by rallies, as coronavirus fears ease. Rinse and repeat, until further notice. I'll tell you what I think of our stimulus chances, where the market will go next, and most importantly, the one profitable play you can make right now... Full Story I'll tell you what I think of our stimulus chances, where the market will go next, and most importantly, the one profitable play you can make right now... Tags: trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2020 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post The Profitable Move to Make as We Wait Around for Stimulus appeared first on Money Morning - We Make Investing Profitable .