July 30, 2020
I thought this screenshot from my phone tells the story well. Two stories about the negative outlook for the economy followed by a simple headline “stocks close higher.” Of course they did! That’s consistent with everything I learned at Darden. Only the naive couldn’t see the causation.
There are a lot of dollars looking for the best return. They’re not finding it in the fixed income market. Is the stock market valuation simply a case of supply and demand? It feels like a bubble to me. Doesn't it feel like there has to be another correction?
As they say, a random walk down Wall Street.