by Lance Roberts
Real Investment Advice
Bullish Bias Continues Into December
The first week of December continued its bullish advance as “bad news” became “good news.”
The announcement by Pfizer of supply chain problems was seen as “good news” as it means more demand for Government stimulus.
On Friday, the dismal employment report, with no bright spots, was also “good” as it meant more demand for stimulus.
The problem is that the stimulus does not create organic, sustainable economic activity. Stimulus only pulls forward future activity into the present, leaving a future void to fill. The size and scope of the stimulus discussed will not directly benefit consumers nearly to the degree seen previously. Such would leave the market very susceptible to disappointment.