Biden’s $1.9 Trillion Stimulus Will Boost Stocks

Improved Vaccine Distribution Aids Stocks:

With vaccine distributions falling well short of expectations and new COVID strains being detected, investors in American stocks are worried that economic lockdowns could last longer. But that's short term. We believe although the near-term outlook is mixed, Biden's historic monetary and fiscal stimulus with improving vaccine-distribution logistics is a tailwind for stocks. Surging Small Caps: After posting a record-breaking quarterly gain of 31% in the 4th quarter, the small-cap benchmark Russell 2000 Index continues to perform, up 1.54% for the week. The great rotation from large cap to small cap continues, as we predicted. No Market Correction for a While: Absent a black swan event, we don’t see the potential for a (much needed) correction until February at the earliest. It really depends on what stimulus is ultimately passed. A short term pullback is necessary to maintain the health of the market, as we're in historic levels of high investor sentiment. Longer term, however, government spending will rise in infrastructure spending, and together with a Fed sure not to raise rates, equities remain a top long term bet. We’re All Good in a Bull Market: Venture Capitalist Chris Sacca said “You’re not actually that good at it. You just caught a wild bull market.” He’s right. It’s easy to be a good investor in a bull market. Don’t put too much of your investable money into pure speculation - leave it around 10%. Be a good stock picker by buying and holding good companies. Don’t just trade to trade. S&P is a Terrible Gauge: What equity index should you measure your equity portfolio against? Should it change? Considering tech companies comprise about 27%, is the S&P 500 a fair index to gauge performance? We'd submit that your benchmarks need to be reexamined. Bitcoin's Overvalued: We're long Bitcoin as a store of value. But it got ahead of itself, and it's still too high, trading over $36,000. If you're a 10 year Bitcoin holder, then sure it's fine to buy at these levels. But if you're thinking one to three years, we'd wait for a pullback. And that's your one minute weekly market

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