Daily Alert – Wednesday 6th January 2021: A messy start to the year

Mark NugentDaily Alert, Jan 2021

Daily Alert – Wednesday 6th January 2021: A messy start to the year

Risk sentiment is all over the place. Strongly risk-off on Monday, moderately risk-on yesterday and indecisive today. It looks like the Democrats will take the US senate at 50-50 with the VP having the casting vote. We have the FOMC meeting minutes tonight.

The full implication of a US “blue sweep” (the Dems taking the Senate, House and Presidency) are unclear but it will probably involve significant fiscal spend and more bond issuance, leading to rising corporate valuations and bond yield increases.

It is unlikely I will trade this week due to it being the first week of the year and due to the major risk events still to fully unfold.

I’ll be back on Friday.

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