Despite the market dipping in March, it seems to be improving. There are many factors that can be contributing to this increase. First, the major stimulus package has helped a lot. Second, short-term bonds and stocks have been substitutes for many investors across the United States. In addition, the various features of our market structure have stimulated the economy. Finally, it is always important to keep in mind that the markets are extremely foreseeable. Keeping this in mind, we can predict when things are going to go south and plan accordingly.
Key Takeaways:
- Very low bond yields make stocks look like an attractive alternative.
- Smaller businesses are struggling the most, but they aren’t directly reflected in the S&P 500.
- Markets are predictive, and we’ll see whether their optimistic view of the future pans out.
“Stimulus has helped the markets a great deal. Americans losing their jobs are getting additional funds, that’s not unusual. What is unusual is that American’s who haven’t lost their jobs are getting cash too.”