by Avi Gilburt
The conclusion presented in the article sums up the general perspective of most market participants quite well:
“We are truly surprised at how optimistic so many analysts in the media have been on the so-called recovery. . . we prefer to look at the long-term economic trend. . . Everything points towards “shrinkage,” not expansion above last year’s levels. . . the economic outlook doesn’t look very bright in the near-term, despite the stock market rising to potentially new highs.”
This perspective is exactly why so many have been surprised by the stock market rally off the 2200SPX lows struck in March. Remember that the market began one of the strongest rallies in history just as the worst information was being reported regarding the coronavirus and we were experiencing a national lockdown, as the economy was closed for business.