Superman stocks: up, up and away. Photographer: Roy Liu/Bloomberg © 2020 Bloomberg Finance LP
Science says the coronavirus is still marching across the globe. Which it is, of course. India isn’t even past peak yet. Southeast Asia is seeing a rise in cases.
The bulk of humanity says: let’s learn to live with this and move on. So long as hospitals are not overrun with sick patients, then this is as good as it gets until there’s a vaccine or therapeutics knock this thing out for the count. If the stock market is right, Wall Street sees things exactly the same.
The S&P 500 continues to rise like the coronavirus case load. Last week, it capped its longest winning streak of the year and Monday was another up day. The index is at an all-time high. The bears are being crushed. People who hate markets are infuriated.
“We still think that markets advance for a number of reasons,” says Mark Haefele, CIO of UBS Global Wealth Management. He names progress on Covid-19 treatments and vaccines all lowering the risk of renewed full lockdowns worldwide. The fact that lockdowns are no longer part of any serious conversation, barring a severe second wave equal to the first wave, then the economy can return faster and companies on the verge of going belly up will be made whole again. Read more >>