Recap December 20: Stocks & Bitcoin Record Highs, Tesla New Age (Recap Ep102)

In this week’s recap, the US stock markets were higher every day, on increased investor hopes of imminent passing of a coronavirus stimulus bill. U.S. stocks surge is pushing equity valuations near the highest levels in years, as investors try to determine if the rally signals an economic rebound or an asset price bubble amidst a global pandemic. The S&P 500 +15.22% in 2020, trades at 22x forward earnings, vs. the historical average of 15.3x. The tech sector accounts for near 28% of the index, trades at an even higher P/E ratio: 26.4x vs the historic average of 20.6x.

Bitcoin skyrockets +14% higher early on Thursday morning, to $22,676.00 then surges over another $500+ to $23,219.10, a gain of 2.39%. Analysts now claim that $30K will soon be in reach, as more & larger investors, pour ever greater amounts of money into the asset. Year to date return is closing in on 200%. However, we still suggest other assets and commodities to trade because their gains are more stable.

U.S. Supreme Court ruled 6-3 Friday to dismiss a challenge to the Trump administration’s exclusion of undocumented immigrants from the U.S. census, the once-in-a-decade population count, which is used to allocate House seats among the various states. It followed with the court’s 6 conservative justices finding that the lawsuit brought by close to 24 states was premature. The court’s 3 more liberal members dissented.

Bill Barr submitted his resignation on Monday; Coinbase plans an eventual IPO; 1st-time claims for jobless benefits increased in the US; Apple will strongly increase its production of 5G iPhones in 2021; US homebuilding is still rising; Americans keep leaving Democratic-controlled cities; The US passed 300k total deaths from the coronavirus pandemic; serious cyberattack on SolarWinds Orion software in the US.

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