$908 Billion

Macro Perspectives: Wed 2 Dec 2020

Stocks were up on news that the Senate had a bi-partisan proposal for a second relief/stimulus package.

The number was $908 billion.

That's far short of what Pelosi has looking for, and, if deployed prior to January 20th, that's far short of what Biden would need to implement the big clean energy/economic transformation plan. So, as we've been discussing, it's unlikely to happen. What Tuesday’s proposal could do is open the door for Trump to repurpose the nearly half a trillion-dollars in unused funds from the original Cares Act, and deploy it by Executive Order.

The prospect of a second stimulus package, bridging the economy to a vaccine, is yet more fuel for the fire under asset prices. With U.S. stocks on record highs, there is money searching for value.

With that, let's take a look at a couple of charts (outside of the U.S.) that look like there is plenty of room to run, in a world where cash is being devalued against asset prices...