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:
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.
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.