OP-ED: Markets Climb A Wall Of Worry: Redux
Published December 11, 2020
The stock market climbing a wall of worry is a cliché in these columns, and indeed, the market is doing it again. The elections, the coronavirus and the economy have provided plenty for all of the markets to worry about. In the course of this year, they have had generational gyrations.
The elections
As the markets processed the presidential election, they had even more on their plate than usual. Markets do not like uncertainty, and a change in government at the top can be a serious threat to stability. But so far, the markets have aced the threat. Contrary to fears and some remaining challenges, the democratic process has held, and a peaceful transition seems to be possible.
Nevertheless, we still have hurdles to surmount. The expected peaceful government change appears to be bringing with it stability in our foreign relations. To date, no significant international event has manifested itself, although it still could. Often our enemies test us during the transitional period from one administration to another. Our democratic process seems to have met its tests.
The orderly election process at the state and local levels has also displayed confidence in our system and thus our economy. Yay for us! And for the many local election officials and volunteers. And for the U.S. system of governance. Are we good or just lucky? Maybe another 250 years will reveal the answer.
The coronavirus
The virus threatened our economy, our government and our people. We are not out of the woods yet, and will not be for quite some time, but it appears we are making progress and restoring stability to the system.
The economy
Corporate profits across a broad spectrum […]