The first week of the Biden Presidency saw a flurry of executive orders--many of which are aimed at combatting the impacts of COVID-19 economically and otherwise. Progress has begun in Congress about the next relief package, though a timeline for passing has not yet been defined. As the "first 100 days" rolls on, it will be interesting to watch the progression of the agenda and any potential compromise that can be reached in a divided government.
Here's what we are reading this week:
Markets are waking up to inflation--which points to real yields staying deeply negative – a positive for risk assets.
U.S. stocks hit record highs as President Joe Biden took office. Italy averted further political chaos as the government won a confidence vote in parliament.
Markets will monitor U.S. consumer spending data this week to gauge the size of the pent-up demand that would be key to the speed of activity restart.
Hartford Funds reminds us that "stomaching" bad news is just part of investing is risk assets.