Going by the numbers, markets and the economy are doing great. The Dow, the Nasdaq, and the S&P 500 all broke several records last week – and all three closed at all-time highs on Friday afternoon.
But if you turn to the news, the picture is much less rosy. There’s no shortage of bad news for the economy. The big trade deal with China keeps getting postponed.
Just last month, the Fed had to step into the overnight “repo” lending market as banks faced a liquidity crunch. And this Thursday, Germany is expected to officially enter a recession.
Meanwhile, the unrest in Barcelona, Bolivia, Chile, Ecuador, Hong Kong, Lebanon, and beyond could have serious consequences for the global economy.
For now, these concerns are outweighed by the strength of the U.S. economy.
But there’s definitely a “wall of worry” on the horizon, one the markets will have to overcome to keep climbing.