Second Stimulus - It's Coming
Macro Perspectives: Mon 16 Nov 2020
As we ended the week, the pieces seem to be falling in place for another lockdown scenario.
We've been discussing since prior to the election, with the prospects of a split Congress we should expect Biden to hold the economy hostage, through tighter virus mitigation, to put pressure on the Republican-led Senate to agree on a big second stimulus package.
It was always going to come from Democrat-led cities and states.
So, we've since heard from Biden's coronavirus advisor, telegraphing such a move - a four-to-six week lockdown.
Chicago issued stay-at-home orders yesterday.
On Friday, the NYC mayor said to prepare for school closures through the end of November.
On Friday afternoon, Andrew Cuomo said the Governors of six Northeast states will hold an emergency summit meeting, amid spiking cases.
California, Oregon, and Washington issued an advisory urging the public to avoid all non-essential out of state travel before the weekend.
It's coming.Â
This comes as stocks finish the day up 1.5% and near record highs.
