Ignorance is Bliss: is the market just ignoring reality?

APRIL 11, 2020   During this latest rebound, 4 trillion has been added to share prices, after losing 10 trillion only a few weeks ago. People are asking, what gives?   In the face of record unemployment, and grim calls of another "great depression" from the IMF why are stocks still rising.   Consider this weeks performance, the S&P gained 12.1 percent-its biggest rally since 1974. The Nasdaq rose 10.6 percent, it's best week since 2009. The Dow didn't do too bad either, rising 12 percent one of it's biggest weekly gains on record. So while the markets were breaking records last week, so were unemployment numbers. More than 16 million fresh unemployment claims have been filed in just the past three weeks.    We can talk about the Fed doing all it can or oil prices, but at some point, we all have to wonder if the market is just ignoring reality? If people don't have jobs they don't have money and if they don't have money, well companies don't have income, never mind stock prices.   It seems the only way to explain the markets at this point is that investors are betting on the one certainty we have right now, the shutdowns will end eventually. Investors seem to be playing the long game, ignoring short term turmoil in order to bet on how companies will be performing once life gets back to normal.   "Its almost as if nobody is even going to worry about 2020," said Chris Gaffney, president of world markets at TIAA. "If the earnings are so bad that it looks like the company won't be able to survive, that matters. But for most companies, investors have to look past 2020 because nobody knows whats going to happen."   More Here   >> Rate Our Newsletter     Main stream media outlets are rolling back headlines which reported that Democrats blocked the Senates latest corona relief bill.   Gasp* We can't have people thinking Democrats might be to blame now can we? That seems to be what CNN, Politico and the New York Times were thinking.   Within an hour after saying, "Democrats block GOP-led funding boost for small business aid program," CNN changed its tune to, "Senate at stalemate over more COVID-19 aid after Republicans and Democrats block competing proposals." Politico also followed suit "Senate Dems to block new coronavirus relief in bid for more money," was changed to, "Senate brawl derails fast push for new coronavirus relief." Finally the New York Times " Democrats block G.O.P. proposal for aid to businesses, request more funds," republished their headline to read, "As Economy Hemorrhages Jobs, Aid Stalls in Senate."   Its funny that none of these changes make the stories clearer for the readers. With the new headlines we don't know why relief was blocked, ie Democrats wanted more money. So Really there's no journalistic explanation here for why the headlines were revised. You don't release clear headlines and edit them to make them less clear.   I guess one thing is clear though, and thats media bias.   More Here     Trump recently tweeted that Bernie supporters should come over to his side, and it seems he may just be trying to win them over, by offering more student loan forgiveness.   "Previously we waived student loan payments for six months, so student loan payments have been waived for six months," he told reporters in the Brady Briefing Room. "We'll discuss it after that. We may go further." Trumps comments come in after Sleepy Joes own efforts to bring the millennials over to his side. Biden announced Thursday that he's now offering total student loan forgiveness instead of the partial plan he'd previously proposed.   It's hard to read what the Presidents intentions are. Trumps not gonna win over your average 20 something, green tea drinking hipster with talk of student loan forgiveness. But Biden has as much appeal as plain oatmeal, his policies are a bland, unoriginal hodgepodge of compromises and half measures, and plus he's clearly going senile.   Who knows extended student loan forgiveness might just get some young people thinking "huh maybe Trump isn't so bad after all?"  Moderate millennials could realize that voting for Trump is better than voting for Joe Biden, who'll would probably forget he's President a few weeks after he gets elected.   More Here       Awesome            Not so good   A California man went down for punching his mother this week. Apparently because she'd squirrled away the families supply of toilet paper due to her son's "excessive use," of the precious resource.   Apparently on Monday, the dispute had gotten to the point where the police were called. When they arrived they'd found this spat between mother and son had turned violent, with Adrian Yan punching his mother in the face for concealing the whereabouts of the families bog roll. The mother explained to police she''d hidden the toilet paper because of Yans excessive use of it.   Yan has since been charged with domestic battery.   This case of son-on-mother violence is proof positive as to why we need bidets. not only does toilet paper production destroy the rainforest, its now causing domestic violence.   Install a bidet. End the madness. Save the planet.   More Here     How was todays newsletter? Awesome            Not so good Trading involves risk. The information provided is NOT trading advice. Neither the Editors, the Publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from the newsletter. Past performance is no guarantee of future performance. This recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability for any purchase or order made from any company or entity mentioned or recommended in this email. The information provided is for educational purposes only. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Actual results may differ. Nothing here constitutes a recommendation respecting the particular security illustrated.

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