(May 22, 2020, 6 p.m. EST) Several months before every recession in modern U.S. history, the Standard & Poor's 500 index began a bull market.
Yet The Economist, an esteemed financial magazine, in a May 9 cover story said the stock market is disconnected from the economic reality.
But could the financial press sometimes miss the big picture? After all, bull markets always occur in plain sight but go unseen. They are never expected and always sneak up on investors.
Will The Economist's headline one day be ridiculed like the August 1979 cover of Business Week, which infamously proclaimed "The Death Of Equities?"
Stocks, as measured by the Standard & Poor's 500, gained 3.15% from a week ago, and are up 27.65% from March 23rd's bear market low. That's a big spike upward.
The Coronavirus bear market low of the Standard & Poor's 500 index, to date, was 2237.39 on March 23, 2020. Closing Friday at 2,955.45, the S&P 500 is priced for the partial shutdown of the economy to continue through the end of 2020 and a sharp recovery in 2021. Expect spikes and plunges in stock prices in the days ahead.
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