Everything Is Wrong In The World. Except For Stocks. The Stocks Seem Fine.
Pretty much every, single headline out of the US on Tuesday was some combination of disconcerting and foreboding.
For example, a new national Monmouth University Poll conducted in the midst of the nationwide protests, shows just 21% believe the country is headed in the right direction. 74% said America is on the wrong track.
For those curious, Monmouth notes this result is "more negative than it has been in polling going back to 2013". The measure stood at 33% to 60% in May and hit 39% to 54%
Futures point to further gains on Wednesday, looks like markets will continue grinding higher until we get some good news…
lol
I find it interesting that I’m still desperately trying to understand what the stock market is ‘saying’ and apply its logic to the world around me, when a more thoughtful individual would have long since given this up as a lost cause. Is it even plausible to assert that the US market somehow embodies a dynamic outlook for the economy or that it serves as real-time, aggregate DCF for its constituent parts? As it stands the S and P is , in effect, a closed, self-referential system, with the Fed arguably within its boundaries.
If I can just hold on to that reductionist thought, I’ll stop sending myself mad trying to rationalise why it would think there’s a V-shaped recovery around the corner. Or why Trump’s re-election would be good for the economy.