By: Tom Gentile
on February 24th, 2021
It isn’t there year, but it wouldn’t surprise me to see it gap up to that on the open tomorrow.
The Dow closed at 31,961.86.
Fed chair finished day two of his testimony today. The markets are closing in on fresh all-time highs and there is talk about inflation concerns and interest rates going higher in the near future, but Fed Chair Powell said now is not the time to worry about the growing national deficit or climbing bond yields.
As much as that was welcome news for the bulls it seems the more impactful statement came from the Fed’s #2 person, Vice Chairman Richard Clarida.
He gave a speech to the U.S. Chamber of Commerce on Wednesday and said downside risk to the outlook for the economy in 2021 has diminished.
Not only did that spur on equities it spurred on those stocks that are deemed COVID-19 recovery related.
Reports indicate there aren’t any unexpected safety concerns from Johnson & Johnson’s (JNJ) single-dose COVID-19 vaccine. This should bring the experimental vaccine one step closer to emergency authorization.
What is anticipated, and in some respects it happened today, is stocks that didn’t participate as much in last year’s run up could see it happen for them now as more of us get vaccinated and the economy reopens more and more.
A good place to start looking at opportunities could be sectors like Industrials XLI, Materials XLB, and Energy XLE.
C1P Chief 1-Percenter