• Fiscal Policy Still Needed: Many analysts are questioning whether the economy can maintain the current pace of the recovery as covid-19 cases continue rising. Given the fact that Americans in the lowest two quintiles of income account for 22% of consumption there will continue to be a strong focus on further fiscal support after the Presidential election since it is necessary for further consumer expenditure.
• New Retirement Rules: A new bipartisan bill was introduced in the House last week that would change the required minimum distribution (RMD) age from 72 to 75. The proposed legislation would also create incentives for companies to offer 401K plans to employees and allow individuals age 60 and older to contribute more funds into their 401K plans.
• Quant & Factor Models Struggle: Hedge funds and ETFs that have built strategies based on mathematical models or “factors” that rely on historical data have struggled during the quarantine. In large part this is due to the fact that there is no historical precedent for the quarantine or the Federal Reserve’s response to it. A study from Refinitiv showed that 72% of firms using a quantitative model-based style of investing were negatively impacted with 12% declaring their model obsolete and 15% planning to build new ones.
• Corporate Boards Become More Diverse:  Corporations rapidly added black members to their boards after George Floyd’s death. Russell 3000 companies appointed 130 black directors since May 25^th compared to just 38 in the preceding five months. Of the 130 new directors 72 were men and 58 women.