Greetings,
United Kingdom: The GDP recovery slowed further in October.
Below is a comparison to previous downturns.
Eurozone: The ECB added €500 billion to its QE program, which was extended for nine months. Why nine? Apparently, it was a compromise between those who wanted six vs. another group who insisted on twelve. Hopefully, Europe will have achieved herd immunity by then.
There will also be more TLTRO financing for banks. Here is a summary from ING.
New Zealand: The central bank will not be explicitly including the housing market in its policy goals.
The housing market has been running hot, which is why the government wanted that policy change. Home sales are up 30% from a year ago.
China: China’s urbanization rate has plenty of room to catch up to developed countries.
Equities: The US broad money supply is up 25% from a year ago. Many analysts believe that this is a key reason for the dramatic stock market rally this year. Of course, large numbers of young investors working or studying from home (after receiving government checks this spring) also helped.
Tesla’s addition to the S&P 500 will meaningfully boost the forward P/E ratio of the index.
Food For Thought: Which countries are at ease with having women in charge?
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com
Dear Friends,
The full-length Daily Shot® is now an independent ad-free publication (see TheDailyShot.com). Here is a sample newsletter.
Daily Shot Brief subscribers are eligible to receive the full-length Daily Shot for $115/year (a $20 discount).
To subscribe with this discount, you must register here (NOTE: The regular subscription page will not acknowledge this coupon). The coupon number is DSB329075 (please click the “apply” button for the discount to take effect).
A monthly subscription is also available (here).
The Food for Thought section is available as a separate newsletter. You can sign up here.
Please note that The Daily Shot is not an investment newsletter and is not intended for broad distribution.
If you have any questions, please contact Lev.Borodovsky@TheDailyShot.com.
Sincerely,
Lev Borodovsky
Editor, The Daily Shot
