It usually pays to be optimistic about the stock market, and there are several signs that things are getting better. First, the coronavirus outbreak is decelerating and we may have a vaccine by end of year. On the economic front, there are several good signs, such as credit card spending and mortgage applications increasing. The money supply is surging, and excess liquidity usually bids up asset prices. Furthermore, fiscal stimulus packages are ramping up in Japan, Europe and the US. Lastly, bull markets often sneak up on you, and the best time to invest is when bad news is at its peak.
- Credit card spending and mortgage applications are increasing, while consumer confidence has stabilized.
- The money supply exceeds nominal GDP growth, which will force excess liquidity to bid up asset prices.
- In Europe, Japan and the United States, economic stimulus packages are ramping up.
“The number of coronavirus cases in the U.S. rose 1.2% on Wednesday to 1.69 million, according to data collected by Johns Hopkins University and Bloomberg news. That was below the average daily increase of 1.4% over the past week.”