Dot.com bubble level assessments, little or no space for Bears when unhealthy news comes out and plenty of space for Bulls to take the reins of the market. This is the outlook on Wall Street in the past month, which has led US indices to a recovery even more spectacular than the falls that preceded it, due to conditions. Nasdaq, for example, is now less than 1% new historical highs, a record it may have already reached by the time you are reading this analysis, which is fabulous, regardless of the type of economic recovery.
This type of investor behaviour would not be possible without a very powerful hand underneath, that of the FED, which was joined by that of the United States Government. Altogether, many trillions of dollars are being poured into the economy and being an economy where the market has a lot of weight, it is not surprising that a good part of that money ends up indirectly entering the stock and bond market, conditioning, and a lot, the Wall Street behaviour. However, like all the “irrational” acts that occurred in the history of North American indices, one day the music ends, we must be aware of that.
Photo by Robin Inizan.
This is not to say that one should invest in the fall, not least because that would be going against the FED and the outcome of the clash is for now inevitably against the Bears.
