Newsletter and Blog

The shortened week, which began with a powerful two-day rally of trading, was enough to drive the markets into another week of solid gains.

The message is still the same right now. The markets are reacting to any news of a vaccine or immune therapy in addition to any stimulus. When either is missing from the news cycle, we have a return to volatile market conditions in our opinion.

We are seeing the Wall Street depart from Main Street at the moment which is giving investors some consternation and mixed messages. On one hand, you may hear how terrible, horrible and dismal the economic condition is not only in the US but around the globe at the present. Heads of State, Global Financiers, Investment Moguls and Billionaires are indicating concerns over what has happened and trying to extrapolate what in their opinions is likely to happen going forward.

Earnings season is coming to a close with numerous companies on the S&P 500 reporting difficulty with the effects of the coronavirus on their business models. Nothing of a surprise here except that with every company reporting, it becomes more and more evident to us that we are facing a slower than expected recovery, unless a vaccine is developed, and then, all bets are off.

We have been watching this interesting and misleading tug-o-war type action unfolding on the markets where we seemingly witness the indexes demonstrating a positive sign and direction when they should be showing the very opposite in our opinion. This is causing a great many investors to get anxious and start to question their current positions and even take action to buy in for fear of missing out on a low in the markets...caution is key here.

When you examine the market conditions and movements beyond the surface layer you will find some very interesting tidbits that when linked, explain the dislocation between Wall Street and Main Street.