What a day this is!
The stock market is up everyone, tell your parents, tell your friends, shout it out your windows, update your followers – the boys are back in town. It’s time to buy low and sell high as they say.
At time of writing, the Dow Jones is up 3.7%, European markets closed strongly up and many of the industries that have dropped over the past months are seeing some recovery.
This sweep of confidence throughout the markets is refreshing for investors who have suffered a lot of losses during this year. We began to consider the potential that the stock market was doomed.
But where is all this newfound optimism coming from you might ask?
Well, Jerome Powell, head of the Federal Reserve, said that he can probably do more to stop a recession.
Also, more news of potential drug success for treating coronavirus was released creating that one-two combo making investors ready to go on a spending spree (also sending the drug maker in question up 25+%).
Unprecedented amounts of unemployment, businesses closing down, national debt soaring, international trade under pressure and overvalued stocks won’t slow this train down.
Powell even admitted that unemployment could reach as high as 25% and a recovery might not happen until the end of 2021…
But people love to feel like things are on the up and up again, so the best option is just to forget all that negativity, forget the coronavirus, forget the economic destruction, pretend like all is okay and let’s buy some stocks! Tesla anyone?
As a final mention, the legal advice from the President should be kept in mind, shorts could be on the way, and perhaps there will be investors ready to pretend all over again.