- Stocks rallied on slim hopes of relaxed lockdowns, economic recovery
- Yields reverse back to all-time lows
- First Chinese economic contraction in decades
With markets betting on a rebounding economy as the national conversation shifts from the pandemic itself to the possibility of easing lockdown restrictions and the arrival of a treatment for COVID-19, U.S. stocks extended their rally a second week—for a total of 3 weeks out of 4.
The climbed for a second week, gaining 3%, its longest advance since the market peaked in mid-February. As such, and , we’ve changed our position from bearish to bullish, albeit grudgingly.
Thin Hopes vs. Hard Reality
To be clear, not only are we hesitant to maintain a bullish stance, we’re irritated by it. Investors are currently buying up stocks, pushing equity indices back toward their record high on thin hopes, while ignoring the hard facts. Currently there are more than 2,330,000 cases of COVID-19 globally, with close to 161,000 fatalities. The…