Prescient or Pollyannaish? Explaining the market’s rally.
Blue chips rallied 2.2% last week despite a parade of grim news such as soaring claims for unemployment insurance and plummeting retail and industrial activity.
Is the stock market telling us something? Could it be fulfilling its role of predicting the future of the economy? Maybe its lulling into a false sense of hope for an economic recovery? Perhaps it is confused and as uncertain about the future as the rest of us!
I believe “To be or not to be” is from one of Shakespeare’s plays. The question today is “prescient or Pollyannaish”?
Not only do we want to know what the new normal is going to be, but as importantly – when?