3 Events to Keep an Eye On for the Rest of 2020
Investors should be wary of the COVID-19 vaccine, employment challenges, and consumer confidence going into 2021, according to OpenMarkets.
These 3 factors could determine where the market goes up until the new year.
Starting off with the COVID-19 vaccine. This year has been tumultuous for everyone, not just investors. Now an unprecedented medical feat has come to light and with it hopefully a return to whatever normalcy will be in a post-pandemic society. So far, several vaccines have performed quite well in clinical trials. However, keeping an eye on side effects and the long-term effects of these vaccines in addition to manufacture and distribution will be crucial.
Markets soared to record highs on positive vaccine news so what would negative vaccine news bring you might ask? Probably a sell-off induced by irrational fear as the market has proven to be so fond of in the past.
The next factor is further challenges to the job market. Just this morning, as of December 10, 2020, we saw unemployment claims come in much higher than expected. The economic fallout from the pandemic and national lockdown periods were not as bad as initially expected and the economy was recovering better than expected. However, it's important to note that coronavirus cases are surging and at the current rate there will still be 10 million fewer jobs than there would have been without a pandemic.
The last factor worth analyzing is consumer confidence. The University of Michigan's consumer sentiment report recently showed the metric decreasing from 81.8 in October to 77 in November. The consumer sentiment report for December is set to be released tomorrow. This report will indicate where investors see the economy going into 2021.
Additionally, inflation expectations for the upcoming year increased to 2.8 percent from 2.6 percent.