Friends
Despite the social unrest we saw over the weekend, and the heightened tensions between the White House and China, stocks had a decent day and got June off to a nice start. Time after time the question is asked of me, why are stocks going up while the whole world seems to be imploding? Well maybe, with the market being a forward looking entity, stocks are telling us it can’t get any worse than it is now. Ok, that was not totally serious, but remember that the massive amount of liquidity that the Federal Reserve is providing, keeps flowing into financial assets. With interest rates at zero, where must one turn to receive any type of return on one’s investment?
As for today, the Dow Jones Industrial Average was up 91 points to close at 25,475. The S&P 500 was up 11 points to finish the day at 3,055. Gold was up a $1 to trade at $1,751 per ounce, while oil was up $.13 to trade at $35.62 per barrel WTI.
Yes, we are certainly dealing with some troubling times. Social unrest, a pandemic disease, and a total shut down of the country’s economy for almost 3 months is about as much as any market could take being thrown at it. Yet, stocks continue to recover from the March lows and work higher day after day. I’m not sure if we have ever seen a bigger disconnect between the economy and the stock market at any moment in time. Strange days indeed.
Have a nice evening everyone.
