1. Concepts: Congress Stimulus, President of the United States, US Congress, Democratic Party, December, Donald Trump

Influence: Negative

Summary: Downside risk if the US Congress can not pass a stimulus by December. Markets still perceive negative sentiment from the US congress, Democratic Party, and US President. However, the last couple of days indicate upside for the market due to a potential stimulus aid resolution.

Top Impacted Sectors: Technology, US Large Caps, Capital Market and Financials

2. Concepts: Medicine, Vaccine, Covid, Immune system

Influence: Positive

Summary: Upcoming Vaccine distribution data showing positive upside for specific biotech stocks and other sectors such as Oil and Gas, Airline and Travel industry. Market consensus estimates indicate a vaccine is going to be distributed and this creates positive upside for aforementioned sectors.

Top COVID Companies: Pfizer, Moderna, AstraZeneca, Novavax

3. Concept: China, Energy, Petroleum, Trade war, Chinese Companies, Delisting

Influence: Negative

Summary: Downside signal risk from a potential trade war. Negative signals from news data where Congress is set to approve a bill that will delist several Chinese companies in the US with China expected to retaliate. Forecasted results of these two actions will increase the trade war volatility. China has also aggressively acquired additional capacity in the energy space placing China at odds with several large US companies.

4. Concepts: (Automobile, Emission Neutral, Climate accord, Europe, President of the United State).

Influence: Positive

Summary: Data shows Europe is bringing in its zero-emission deadline to 2030 which was previously set for 2040. This action accelerates the conversion of the automobile industry from internal combustion to zero-emission electric vehicles. Aggregate forecast data indicates the US will rejoin the Paris Climate Accord and will likely push for more electric vehicles.

Top Automobile Companies: Tesla, and GM

5. Concepts: Brexit, European Union, International Trade, UK, Boris Johnson, Deadline

Influence: Neutral

Summary: EU-UK trying to finalize the trade-deal for Brexit before the deadline ends in 2020. Potential no-deal Brexit may happen which will negatively impact the UK economy and international trade.

6. Concepts: Gold, US Dollar, Devaluation, Inflation

Influence: Positive

Summary: Gold demand is increasing from the fear of a US dollar devaluation and inflation and continued pandemic related volatility.

7. Concepts: Cannabis, Marijuna, US election, Weed, Canopy Growth

Influence: Positive

Summary: The US elections further legalized the use of cannabis. Additionally, the future administration seems favorable to the cannabis industry and the House approved the federal marijuana legalization bill.

Asset Class 30 day AI Forecast

 

Date Asset Expected Return Percentage
12/04/2020 EWJ 3.15997306
12/04/2020 TLT 0.3447434385
12/04/2020 HYG -0.8521193248
12/04/2020 SHY -1.168232782
12/04/2020 IYR -1.648393401
12/04/2020 BNDX -1.6618187
12/04/2020 GLD -1.727329206
12/04/2020 TIP -2.627335582
12/04/2020 LQD -5.252609064
12/04/2020 EFA -5.688863895
12/04/2020 EEM -5.810933321
12/04/2020 EMB -6.263514683
12/04/2020 SPY -14.23059266
12/04/2020 IWM -15.36779679
12/04/2020 QQQ -28.13825724

Source: EquBot