Why Is the Stock Market Rallying When the Economy Is So Bad?

by | May 12, 2020 | COVID-19, Investing, Smart Financial Tips

I have been reading this article from The Wall Street Journal for a week or more, updated as the market continues to rise.  A client also sent it to me Sunday, which inspired me to share it.

Bottom line: the markets seem to expect a relatively fast recovery for now. As we wrote in several letters/blogs, there has been a wide range of uncertainty between the “total catastrophe” view to the view that we might find some fast if imperfect solutions that help us flatten the curve (which did happen) and then adapt and get back to work.

To be clear, we are still early in the process; a lot could go wrong, and we have to be careful and stay focused.

By Roger Hewins

Roger Hewins

Team Hewins, LLC (“Team Hewins”) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training, and no inference to the contrary should be made. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas.