Why the stock market is up even with historic job losses

Simple (and not so simple), the Fed is backstopping stocks.

(From CNBC)

“The market knows that the job losses are self-inflicted due to the widespread shutdowns,” Bleakley Advisory Group chief investment officer Peter Boockvar told CNBC. “Thus, now that we are beginning the reopening process the market assumes many of these people will hopefully get hired back over the coming months and quarters.”

Yes, (some of) the market thinks this (right now). But it also knows that the Fed is waiting to pour trillions into the economy if “need” be.  For the time being the market still thinks the Fed is all powerful. (It’s not.)

Source: https://www.ac2news.com/2020/05/why-the-stock-market-is-up-even-with-historic-job-losses/

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