Opening Statement from the December 2020 CCPM Forecaster

Opening Statement from the December 2020 CCPM Forecaster

Originally published on December 6, 2020 

The month of November was marked by a tremendous boost in sentiment resulting in a very strong rally in global capital markets. After experiencing a selloff in late-October, many commodities mounted a solid rebound in November commencing with the U.S. election rally.

On Monday, November 2 (the day after release of the November CCPM Forecaster) the capital markets entered what would later progress into a very strong rally after having sold off in the final days of October in anticipation of the U.S. elections.

As some readers might recall, in the October 2020 Intelligent Investor we discussed our view that it did not matter who won the election because investors had already taken a bullish stance moving into 2021 for a variety of reasons, none of which relied on who the next U.S. president would be.

Although the election results were not immediately apparent, investors were more focused on fundamental issues fueling the capital markets in 2021, including a continuation of very low interest rates, successful development and distribution of one or more coronavirus vaccines, and continued progress on the economic recovery. This optimism is being reflected in the capital markets...