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Off to the Races

On Sunday, Larry Kudlow stepped up on the pitcher's mound and threw this fat pitch: The economy is 'Off to the Races'.

"With the rescue package and the reopening of the economy as we transition, 80 percent of small businesses according to the Chamber of Commerce are reopening. ... New business applications are roaring," Kudlow told "Sunday Morning Futures." "I think we're off to the races in what will be a very strong V-shaped recovery."

Morgan Stanley Echos Kudlow

The recovery rally has further to run, so Buy Socks says Morgan Stanley.

“While the last four months have been exceptional, we think that this cycle has been, and will be, more ‘normal’ than appreciated,” said Andrew Sheets, the bank’s chief cross-asset strategist.

“We think that stocks and credit will be modestly higher and tighter over the next 12 months,” he said. The bank forecasts the S&P 500 index at 3,350 points and benchmark U.S. 10-year yields at 1.3% by mid-2021.

“We recommend a broad rotation into cyclicals and value across global equities.”

It's not often I agree with the Fed, but I do now. 

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The Fed Warns of High Downside Risks , and it's crazy to pretend they do not exist.

Fed Projects 2020 Growth at -6.5%, Unemployment 9.3%

Please note the Fed Projects 2020 Growth at -6.5%, Unemployment 9.3%

Fed's New Tool

Also, please see Fed's New Tool: Not Thinking About Thinking

The Fed does not expect a V-shaped recovery and neither do I.