- Stocks have been climbing on the hope of a V-shaped recovery amid the promise of infinite QE, even as the Fed itself said that wouldn’t be enough
- Treasurys advanced Friday, together with equities–a potential sign of a pullback
- The USD may rally before continuing lower, allowing gold to move higher
The only thing investors appear to be seeing is the light at the end of the lockdown tunnel, as economies around the world continue reopening and government regulators keep issuing unprecedented amounts of fiscal easing, even as equity bulls turn a blind eye toward ongoing, devastating economic data and the revival of US-China .
The climbed 0.5% on Friday, finishing the week 3% higher—a second consecutive weekly advance for a total of +6.3%. It also marked a monthly acceleration for the SPX just a hair under 5% and the second straight monthly gain for a total of 17.8%, the best two-month performance for the index since 2009.
Still, not all the news last week was encouraging. US …