As global share markets reversed off of their March lows many people have been struck by what they believe is a contradiction between the economic data and the market’s response.
Doomsday stories of great depression unemployment, bankruptcies, collapsing earnings, are out of phase with the fact that stocks are at or re-approaching all-time highs.
Some see this as evidence that there is a V-shaped bubble meaning that the market is too optimistic about the economy recovering from the C-19 coronavirus chaos that caused the instant recession in March.
Things have gotten better, the ‘bad old bubble‘ days are over, and, the only major bubble the past 10 yrs has been cryptocurrency; it occurred outside of mainstream finance.
In my discussion with economist Bruce WD Barren* Sunday on the Things Have Gotten Better subject we noted the following: Not only will unemployment shrink in each of the coming months, there will also be evidence of a pent-up demand in retail. Americans are tired of staying at home and will want to shop as their bills come under control. We are an optimistic nation and so, we will see a sharp rise in consumer confidence. This will cause a continued increase in the stock market prices and as a result, America will see the fastest recovery in history. Plus, a return to Law & Order as the Obamagate players and domestic terrorist will be prosecuted to the fullest extent of the law.
*Bruce WD Barren, a recognized expert in domestic affairs as Chairman of The EMCO/ Hanover Group, he is a frequent guest commentator on LTN.
Have a healthy day, Keep the Faith!