“This week’s sustained rise in initial jobless claims will be concerning news for investors.
Despite brighter days on the horizon, the economic recovery has narrowed and economic growth in the near term is likely to struggle. While the terms of a potential fiscal relief package are still very much up in the air, it may not be enough to help some industries and companies survive through the winter.“
Overall, there is optimism about the long-term outlook for the economy but caution still remains in the near term. The coronavirus continues to spread at a rapid pace, with an increase in hospitalizations and deaths unfortunately following close behind.
“The success of vaccine trials has boosted enthusiasm about a sooner-than-expected rebound in economic growth. However, any rebound will likely not be allocated equally among all sectors of the economy, and many things need to go right, including a smooth distribution process, no manufacturing or supply chain hiccups and widespread adoption of the vaccine.”