• Shane Zimmer

The Close: Markets Retreat from All Time Highs After Stimulus Hopes are Diminished in the Senate.

Stocks were up big yesterday, closing at records highs due to stimulus hopes, as President Trump and the House agreed on the $2,000 package, yet today those hopes seemed to evaporate. Mitch McConnell in the Senate will not agree to the bill, where he said this to Chuck Schumer when asked about passing the bill, “No”. While there are factors in which these massive spending bills are detrimental to the aggregate economy, I believe most Americans agree that their disposable income won’t increase with that $600 payment. What are struggling Americans going to do? Pay one rent bill, and unfortunately end up out of luck after that. While this year comes to an end, we realize what has occurred within the market, and how much we’ve gained from our lowest points. Could we see another rally in 2021? Possibly.



After touching record highs yesterday and intraday today, but the three indices closed down for the day. The Dow ended 68 points lower, or -0.22%. The S&P 500 closed down 8.32 points, also down -0.22%. The Nasdaq also ended lower, closing down 49.20 points, or -0.38%. The Dow is now at 30,335.67, the S&P at 3,727.04, and the Nasdaq is at 12,850.22. Out of all the indices, the Nasdaq has crushed it, with a YTD gain of over 40%. Bitcoin, a notable cryptocurrency, has been gaining some substantial gains recently, up to 27,131.373, which gained 504.2 points today. While I am not a crypto investor, and do not believe I ever will be, it must be noted as the currency is gaining a massive amount. Bitcoin is a currency that gains every year at some point, individuals freak out and buy more, then it falters, but this time I do believe that this currency form will be a big part of the future. While overvalued for essentially anyone who isn’t making close to $1,000,000 per year, it is fun to watch their rise and fall.



What were some gainers for the day? Alibaba, $BABA, gained 13.90 points today, up 6.25%. It is strange that this stock gained, as the antitrust suits are riveting throughout the globe against these big tech companies. Amazon, $AMZN, gained big today, up 38 points, or +1.16%. Who lost the largest? While this is not the largest loss of the day, Blink, $BLINK, lost 6.49 points today, down -13.25%.



What are we looking for in 2021? What will the year bring in the market and the economy. While many will not give you a straight answer, I will attempt to do so. Today, I’ll write an overview, quickly, but a post before the year ends will outline my overall outlook on the market for ‘21. Money supply is up 25% year over year. That means, it’s up 15% since its highest point, previously, during the great recession. With the Fed utilizing monetary policy this freely, it has become concerning for the future. This will later increase inflation to substantial levels, interest rates, and much more. Will these issues play a role in 2021, most likely not, but we must be wary and cognizant of these for the future. Another aspect I will touch upon in the other post will be my top picks for 2021, but one of which I will give now is $NCLH. The cruise line industry is one of which many utilize. If you’ve ever been on a cruise, you’ll understand how exhilarating the experience is and will always want to go again, and again. The cruise company will not fail, as it’s TBT



​© 2020 by House Enterprise.

A Jake Zimmer and Will Tondo creation.

Based in Providence, Rhode Island

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