Posted on 05/09/2020 11:23:50 AM PDT by SeekAndFind
The latest jobs report revealing record U.S. unemployment highlights a growing rift investors are struggling to reconcile: a rallying stock market and stumbling economy.
Gains in U.S. stocks accelerated Friday after Aprils nonfarm payrolls report showed unemployment rose to 14.7%, the highest level on record. It was the latest head-scratching development for many market observers, who have been parsing a steady stream of abysmal economic data while watching the U.S. stock market stage a recovery.
[SNIP]
Many analysts are looking past the grim economic data, forecasting a speedy recovery as state economies open back up across the country.
New York, which has been the hardest hit by the pandemic, has begun developing a plan to restart its economy. Other states are farther ahead, with more than 20 allowing some businesses to reopen. Nevadas Gov. Steve Sisolak said some businesses including dine-in areas of restaurants would be allowed to reopen Saturday with social distancing and occupancy limits. Those moves have encouraged investors that the economy is poised for a rapid rebound by early 2021.
Additionally, the number of new Covid-19 cases has moderated in the U.S. And stocks have surged on any signs of progress toward a potential vaccine.
People are making the bets
.that this is the bottom, said R.J. Grant, director of equity trading at KBW. Still, he said, The market is really divorced from economic reality right now.
(Excerpt) Read more at wsj.com ...
Many analysts are looking past the grim economic data, forecasting a speedy recovery as state economies open back up across the country.
...
Some companies are already doing great.
Fact, rumor, speculation, and
anticipating the Socialist candidate will lose.
Market is forward looking and likes what it sees.
I would like one more 1/4 of depressed prices to reinvest at those rates but will settle for an upturn cause”were all in this together”....
Yea right !
Im not sure thats right. Stock market futures were in a free-fall late on Election Night as it became more obvious that Trump was going to win.
Read a article several months ago, that mutual
Fund managers , due to their funds forced
Percentages, of (fill in the blank % Stock vs
Fill in the blank % bonds) would be obligated
To buy stocks due to amount of money they
Had lost, in order to rebalance the funds to
Meet their requirements.
Buy low. sale high.
Because the majority of small businesses are shut down. Small businesses were the sacrificial lamb in this stupid move.
I guess that’s a decent come back, but I’d say the reality
of the market’s performance for the next nearly two months
puts the make believe world of futures to shame there.
As always, the stock market is predictive, a leading indicator.
The Chinese connected big box stores are doing great selling their Chinese garbage.
Because outside of a few hotspots the reality of COVID-19 isn’t matching the hype. We can debate ad infinitum why that is and whether that will change but as of today it’s a big “meh”.
Bear in mind, lunch at McDonald's will cost you $1,000 at that time, but Jerome Powell and the Fed have made the day of the 100K Dow a certainty. :)
20 million unemployed spending Uncle Sugar bucks which will lead to $1=$.01
Everyone loves getting that slave labor crap from China.
Has China closed its plants yet?
Pause for just one serious minute.
EVERYTHING in life is dependent on what you think.
Even some terminal patients hold out hope, knowing better.
Why is the market going up ?
People are believing it should, so it does.
I think there's a lot of truth in that. I think the reason we haven't seen much inflation from the loose money policy that's been pursued for some time now is that the consequences are being absorbed by the entire world economy, not just the U.S. But if we keep going the way we're heading, we'll be seeing some palpable inflation before too much longer. You can't get away with this sort of thing forever. The piper will be paid.
The market is always smarter than a bunch of agenda driven pundits.
Er, the market is NOT a reflection of a current economy. It is a discounted estimate of FUTURE expected earnings.
Not so.
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