“GNG TV: Will 2020 be the Year the S&P 500 Reaches All-Time Highs?

The S&P 500 index recently broke out to all time highs as investors continued to bid up stock prices in anticipation of more stimulus money and a post-COVID economic recovery. This marked a significant milestone for the index, but the big question now is whether the rally will continue through the remainder of 2020. It seems unlikely that the market will continue to move upwards unabated, especially with continued geopolitical tensions in the background, but there does seem to be enough underlying support to keep the rally going until year end. The first stimulus package provided a much needed buffer of cash flow for individuals and companies, and the second s relief package that is being negotiated in Congress should provide additional buying power for Americans. Moreover, lower interest rates are maintaining economic stimulus measures favorable to investors – allowing them to borrow money at incredibly low-cost. On the other hand, there are still some risks to the market that could derail the current rally. For instance, if the US and China fail to come to an agreement on trade tensions, businesses could face heavy tariffs or other financial hardships which could put pressure on the stock market. Additionally, continued outbreaks of COVID 19, both domestically and globally, could cause significant market disruptions if a new wave of lockdowns are implemented. Overall, the current market rally is likely to continue into the year-end, sustained by positive macroeconomic factors while maintaining a watchful eye on the underlying risks that could weigh on stock prices.