Market Outlook · October 26, 2020

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Brent Ciliano

CFA | SVP, Chief Investment Officer

1 Most indicators remain below their pre-recessionary levels

The consensus expects a sharp quarter-on-quarter rebound for GDP on the heels of the severe decline in the second quarter.

2 Leading economic indicators continue to improve

The consensus expects at-to-above trend growth through 2021 and into 2022.

With 27% of S&P 500 companies reported, third quarter earnings are pacing ahead of expectations.  84% of companies have reported better-than-expected results.

3 So why do certain segments of the labor market continue to lag? At least part of the story is small business.

Well over half of individuals work at small businesses, many of which are struggling relative to their larger peers.

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