Mike Wilson head of U.S. Strategy at Morgan Stanley thinks something has to give = either the risks to the recovery (COVID cases, election concerns, fiscal cliff) need to subside and the market broadens, or these risks will ultimately topple the winners, too.

He argues that current breadth is just unhealthy and therefore unsustainable = the most…[Read more]

Goldman Sachs: 2021 Vaccine Boost: While the uncertainty is elevated, our analysis suggests that the baseline outlook for vaccines is a positive one with significant vaccine distribution likely in the next 2-3 quarters and a likely sustained boost to growth next year. These findings support our above-consensus forecast for US and global GDP growth…[Read more]

Goldman Sachs expects the overall size of the next round of fiscal support to total $1.5 trillion, with approx $1 trillion due before year-end and they “continue to believe the odds are high that Congress will enact a fiscal package before leaving for August recess”

US SENATE DEMOCRATIC LEADER SCHUMER: WE ARE CURRENTLY PRETTY FAR APART ON THE COVID-19 STIMULUS DISCUSSIONS. HOWEVER, I DO REMAIN OPTIMISTIC THAT WE WILL FIND A STIMULUS SOLUTION.

NATALLIANCE: “.. the stimulus package from the Senate looks ugly and inefficient to curtail covid weakness for now.. And is so far away from the pork filled House package, we are skeptical that it gets done this week.. but we have seen Mnuchin pull a rabbit out of his hat before”

Morgan Stanley: This past week, US L/S hedge funds added to both gross and net risk on the week per the MS PB Content team – weighted gross is now back to the 97th %ile since 2010 while net leverage is up to 53%, the 65th %ile since 2010 and the highest since Aug 2018. This is the first time US L/S gross and net have both been this elevated s…[Read more]