COVID-19 is surging again in the South and West, with cities like Houston, Phoenix, and Tucson out of ICU beds or close to it.
Meanwhile, the economy is slowly recovering in fits and starts, with unemployment shrinking – but much slower than some analysts were expecting.
You wouldn’t know it from looking at the stock market, though. Fresh off a five-day winning streak, stocks consolidated on Tuesday.
And a crash like the one we saw in February and March is nowhere in sight. In fact, we’re in the fastest bull-market in U.S. history. Stories abound of stocks surging unbelievably fast. Some of them, like Hertz Global Holdings Inc. (HTZ), spiked only after they declared bankruptcy.
Part of the reason is the flood of millennials and generation Z-ers using the lockdowns to start trading stocks and options – who are joined by the sports betters who have no games to bet on – joining forces and using Robinhood and similar apps.
But this “disconnect” between the market and what’s happening out in the world isn’t just limited to the U.S.
In China, that reality gap is much, much wider.
In the short term, that’s very bullish, setting us up for a virtuous cycle of stocks pushing up one another.