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Integrated Insights -- Week of October 26, 2020

Integrated Insights -- Week of October 26, 2020

October 27, 2020

We are crossing into the final week of campaigning for the White House, which has coincided with a large uptick in virus cases across the country.  The broader economy keeps providing strong recovery figures (e.g., durable goods orders continue a 5-month increase with latest report). Though I believe investor confidence is cautious awaiting policy direction post-November 3.

Here's our reading for the week:

Weekly Commentary -- Changing government bond views -- BlackRock

  • BlackRock has downgraded U.S. Treasuries and upgraded their inflation-linked peers ahead of the U.S. election on a growing likelihood of significant fiscal expansion.

  • A pickup in Covid-19 cases may weigh on mobility and activity in the near term, but we see this wave of infections as much shallower than the spring one.

  • The European Central Bank’s policy meeting this week will be in focus as markets expect potentially more monetary easing into 2021.

Social Distancing Recovery Dashboard -- Cetera Investment Management

Legislation Watch -- Securing A Strong Retirement Act

Bi-partisan legislation has been introduced in the house which would expand on the SECURE Act (passed late in 2019). The legislation's 2 largest items impact required distributions from retirement accounts & student loan payments.

  • Raise the age RMD beginning age from 72 to 75

  • Allow workers repaying student loans to get a company 401(k) match even if they’re not saving in their workplace plan

Stay tuned for updates on this legislation.