Monday Market Meltdown – Virus Mutation Trumps Stimulus

Cartoon - COVID Grinch$900,000,000,000!  

Still not enough to give us a good day in the market?  The stimulus news is baked in but the news of a new, more infectios strain of Corona Virus has pushed the UK towards stricter lock-down measures, which the rest of Europe is now considering as well.  Christmas is officially cancelled.  

The new virus strain is spreading 70% faster than the old one, which has already infected 17.5M of us (5% of the population) in the US with 315,000 deaths and 403,359 new cases on Friday alone, which would be a rate of 17.5M more infections in the next 43 days – just in time for Joe Biden to be sworn in.  Since we know Trump will continue to do nothing to slow things down and since this is the spread of the original virus strain in the US – we are well and truly screwed!  

So Merry Christmas to one an all, only 4 shopping days left and Retail Sales were down 1.1% in November from October – and that included Black Friday!  Usually, around Christmas we survey our Members for shopping reports from malls around the country but this year no one is going shopping so we can only imagine how empty the malls must be.  Online shopping is up 29.2% but onlline is only 10% of all Retail so not enough to save the rest.   Also, as we have noted before, the kind of retail that's up is masks and gloves and disinfectant – not the kinds of things that you usually go to the mall for.

U.S. Retail Sales

How's that recovery looking?  

 

IN PROGRESS