Updates, Tips, & Finance News

-Biden wins, but without the Blue Wave that was expected
-The Fed reaffirmed their willingness to step in
-The outcome of the election isn't what the markets expected, but there was a run-up nonetheless

Hi there—here is this week's update!


Former Vice President Joe Biden wins the U.S presidency.

Market participants were assuming that there would also be a Blue Wave, where Democrats would control both the House and Senate as well.

The likelihood of a Blue Wave has diminished, which means that the passage of a larger stimulus bill is less likely. Without as much fiscal support, the U.S. recovery coming out of COVID will likely take longer, and there may be more business casualties as a result.

The Fed

The Federal Reserve will likely have to play an even bigger role in our economic recovery, assuming the senate elections plays out as anticipated. This means that the Fed will have to throw more at the markets via monetary policy.

This week's Fed meeting indicated their willingness to purchase more assets, which might even include stocks at some point.

Stock Market

This week saw a remarkable run-up in the stock market from the election.

Our opinion is that the rally is primarily driven by continued optimism around abundant liquidity provided by the Fed and their ability to step in.


There were a few potential positive outcomes that market participants were focused on:

1) If Trump would be re-elected, there wouldn't be major tax hikes. This would be positive for the markets.
2) If Biden would be elected, there would likely be a Blue Wave. This would lead to an incredibly large stimulus package—bailing out Main Street.

It seems likely that neither of these scenarios will play out, but the markets rallied nonetheless. Our opinion is that the markets are saying that the Fed will buy more and prop up assets further.

To sum it all up, the Fed will be supporting the markets, but that doesn't mean that it will stop volatility in the near-term.

See you next week,
-Saul & The Round Team

Link: https://docsend.com/view/z8iy9wzq5ep3688z

Have $100,000 or more to invest? You may qualify for Round Private Client. Contact our team at privateclient@investround.com.

Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC. The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. The opinions expressed by Round represent the current, good faith views of Round and are provided for limited purposes, are not definitive investment advice and should not be relied upon as such. The stock market is in reference to the S&P 500 index. An index is unmanaged, does not reflect management or trading fees, and one cannot invest directly in an index. Stock market performance is in reference to the SPX Index and was provided by Bloomberg Terminal. To view Round's Brochure, Terms of Use, Privacy Policy, and Disclosures go to www.investround.com