ECON Discussion Article Questions

*** There are two parts to this Assignment (Part A & Part B). Refer to the attached article. ***

Tech stocks have pulled back this week as investors have reordered the market’s winner and losers. The Dow Jones Industrial Average continued climbing Tuesday, powered by cyclical stocks like manufacturers and energy companies that are particularly sensitive to the economys trajectory.

A)

Question 1:  What new information was released to the public that caused the Dow and the S&P500 to set intraday records Monday?

Question 2:  Some investors cautioned that this week’s rally was likely overdone.  Why does the article caution investors?  Do you believe there are any other risks the market should be aware of?

Question 3:  Esty Dwek, head of global market strategy at Natixis Investment Managers, states “the positive news about coronavirus vaccines, combined with improvements in the U.S. economic situation, might reduce support among lawmakers for a large fiscal package.  Do you believe the stimulus package will be larger or smaller than the market expects? Why?

Question 4: Why is Tim Courtney, chief investment officer at Exencial Wealth Advisors, not super excited about the market today?

Question 5:  What does Tai Hui, chief Asia market strategist for J.P. Morgan Asset Management in Hong Kong, mean when he states the breakthrough in vaccine development could trigger the rotation out of the outperformers to the underperformers?  Do you agree or disagree and Why?

(Separate your response by question number)

B) 

Post a link to One article that supports One of your responses to the questions above and/or provides more insight on the subject discussed in the article.