Another opinion on why the stock market is doing relatively well.
https://www.cnn.com/2020/06/03/inves...rus/index.html
Quote:
The stock market is not the economy. But rarely has the gap between Wall Street and Main Street felt so wide.
The United States is going through its worst race crisis since 1968 following the death of George Floyd, an unarmed black man, at the hands of a police officer in Minneapolis. Riots have hit cities across the nation. Looting is rampant. And President Donald Trump is threatening to send in the military to stop the violence.
The civil unrest could exacerbate the coronavirus pandemic that has already killed more than 100,000 Americans. That in turn could deepen the economic collapse that has forced more than 40 million people to file for unemployment. Meanwhile US-China relations are imploding, imperiling the trade war ceasefire reached between the world's two largest economies.
The market is broken. It no longer reflects a forward outlook that is truly aligned in the real economy."
And yet, the stock market is downright booming.
The S&P 500 closed Tuesday at the highest level in nearly three months. The Nasdaq has spiked 40% since March 23, fueled by the resilience of Big Tech, and is now within striking distance of all-time highs.
There are two major reasons for this: unprecedented stimulus from the Federal Reserve, and investors not wanting to miss out on monster returns once the economy recovers.
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The latter re: FOMO resonates with me. I have confidence the stock market will come back sooner or later (1-2-3-4-5 years) but eventually it will, so no panic selling, and honestly I know I'm not good enough to time the highs-and-lows.