As we move into the fourth quarter many are feeling concerned. We have an upcoming election that appears too close to call going into it. The outcome is likely to be contested. COVID-19 is rising again in a second wave. Europe and some U.S. states are experiencing a remarkable rising incidence of disease. The stock market continues to be volatile.

In our last report we discussed the shape of the market recovery. Was it to be a “V” shaped recovery, a “W”, a “U” or an “L”? It is still unclear. A new option “K” seems to be getting the most attention as the recovery seems to have two distinctly different looks depending upon one’s employment and socio-economic position. A “W” with more than one wave seems likely. Let’s look at the S&P 500…