Put/Call Ratio 5 day Average Is At Lowest Level Since Internet Bubble

U.S. stock markets began a renewed rally from the March low in October as investors found new reasons to be optimistic from the prospects of a Biden administration and the imminent availability of several effective vaccines against the Coronavirus. The expansionary policies of the Fed and positive seasonal influences have helped support market strength.

What is troubling is the historic divergence between investor expectations and the condition of the underlying economy. The economic recovery of 2020 has faltered and there is a risk of a “double-dip” recession in 2021 before widespread vaccination can be implemented.

Are the growth expectations of consensus opinion justified? What is the risk of a significant correction?

We weighed the bullish and bearish factors facing the market in the recently published December 6 issue, along with our usual coverage of major global markets, bonds, and major commodities.

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