Outlook | January 2021 | S&P, Politics and Economics

Summary of the month

The S&P 500 began 2021 the same way it ended the previous year. Positively, driven primarily by the continued rotation of financial assets into the corporate sector. Value. Among these, the energy, financial and materials sectors stood out.

The United States witnessed a historic event that increased political volatility when the Democratic Party won the Senate elections in the state of Georgia. In doing so, they gained control of Congress for the next two years. In response, outgoing President Donald Trump called on his supporters to stop the ratification of electoral votes and the U.S. Capitol was invaded and vandalized. As a result, Congress approved the treatment for a second impeachment trial against Donald Trump within his presidential term.

Considering the massive new fiscal stimuli and the start of the vaccination process, the market seems to have ignored the emergence of new strains of coronavirus, along with cases, hospitalizations and deaths at peak levels.

Macro Corner

The market continues to rally, driven by the same stimulus trends we saw last year and the beginning of vaccine distribution. We have already seen an unprecedented recovery from the lows reached in March, completely ignoring the COVID-19 levels, record levels by any metric.

"Recovery is underway, but there will be obstacles"