That was a Terrible Weekend...
While the death of George Floyd is horrific and the injuries and damage surrounding the weekend’s protests are heartbreaking, the markets’ subdued reaction to the widespread social unrest in the big cities is telling. If the markets thought that current social unrest would spiral out of control into a summer of violence, then the markets would be in a full retreat right now.READ NOW >
Time to Rotate?
It is only fitting that we have a German amusement ride pictured above given how well this large, developed nation has navigated COVID-19. With its case growth rate slowing significantly this month, the German government is now opening up the country, as well as making a significant investment in Lufthansa. As we see similar moves in other major countries, the financial markets continue to be excited for the positive impact of re-openings.READ NOW >
'The Last Dance' was awesome, but...
Jerome Powell’s appearance on ’60 Minutes’ added $2.5 trillion in value to the global equity markets on Monday. That is the same value as 4.5 million pairs of Jordan-signed 1997 NBA Finals “Flu Game” sneakers which auctioned off at $560,000 this weekend. I fully expected the markets to open lower Sunday night as the White House’s saber rattling with China intensified during the Sunday morning talk shows.READ NOW >
It Doesn't Make Sense
The market’s continued rise is confusing many stock market participants and observers equally. The biggest surge in non-farm payrolls and spike in unemployment in 80 years would not seem to correlate with a stock market that just rose +25% in seven weeks. But the difficult economic data is backward looking while the stock market is forward looking. Don’t forget that stocks fell by one-third before the U.S. economy completely shut down.READ NOW >
Time to Venture Out
Italy, Spain, Germany, Austria, Lebanon, Poland, Canada, India, Belgium, Greece, Iceland, Hungary, Monaco, Nigeria, Poland, Portugal, and many U.S. States are opening up this week. After weeks of flattening the new-case curves, combined with scientific advances in therapy drugs (remdesivir), improvements in physical treatments, and increased virus and antibody testing, it is time begin returning to normal.READ NOW >