The S&P 500 Continues Clocking New Highs On Vaccines, Delayed Stimulus

The S&P 500 (Index: SPX) closed out the first week of December 2020 at a new high, it's third of the week, just under the 3,700 threshold.

Through most of the week, the anticipated coronavirus vaccine-enabled recovery boosted expectations for future dividends. On Friday however, the market's momentum was marginally aided by the prospect of a long-delayed relief bill for Americans economically harmed by the pandemic finally moving forward, as U.S. House of Representatives Speaker Nancy Pelosi acknowledged her role in blocking any relief bill for months and indicated she was now receptive to a more sensible spending bill than the version she had previously been pushing without any consideration of compromise.

In the latest update to the alternative futures chart, we find investors are still focused on the distant future quarter of 2021-Q3 in setting current day stock prices.

(Click on image to enlarge)

Alternative Futures - S&P 500 - 2020Q4 - Standard Model (m=+1.5 from 22 September 2020) - Snapshot on 4 Dec 2020

That's a much easier observation to make this week, because the short term echo of past volatility that's disrupted the dividend futures-based model's projections of the future for S&P 500 stock prices has come to an end.

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