Over the last few months, the stock market is acting like there is no real economic crisis.
The S&P 500 index is close to a record high after falling 34% in March. The tech-heavy Nasdaq has set six new record highs in the last few weeks.
The reason for this behavior in the stock market is simple: hope.
Investors are holding out hope that the economy will rise quickly amid the global coronavirus pandemic that has locked down businesses and put us in a recession.
In this episode of The Bull & The Bear, host Matthew Clark gives his take on the theory of a fast economic recovery and how it’s a myth.
Remember, hope is not an investment strategy.
Just believing something is going to happen doesn’t mean it will happen.
There are indicators out there showing this hope of a rapid recovery to the economy is hogwash.
Stocks may be high now, but that’s not going to last.
This recovery is going to take longer than you might hope. And we’ll tell you why. We’ll also tell you what sectors you should look at in these economic times … and which to avoid.
The Bull & The Bear
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