touched its most recent bottom of 2,191 on March 23, but it has since rallied mightily on the back of robust action from the Fed and growing confidence among investors that economic restrictions meant to slow the spread of Covid-19 could be relaxed sooner than expected. As of Thursday's close, the S&P 500 has gained more than 30% from its virus low.
Siegel, a longtime stock market bull, said he believes the only way the stock market could retest the March 23 bottom is if there were a more severe coronavirus outbreak in the fall and full-scale lockdowns have to be implemented once again. "I don't think that's going to happen. I think that's a low-probability event," he said, while acknowledging the "second wave" of the 1918 Spanish Flu was far more deadly than the initial outbreak.
Siegel's comments Friday morning came shortly after the government said that a record 20.5 million nonfarm jobs were lost in April, sending the unemployment rate skyrocketing to 14.7% last month due to the pandemic economic halt. However, the Wharton professor said he is more focused on data around the spread of the virus, rather than backward-looking economic reports, since it offers a forward-looking view on how the economy could recover.
And what comes out of a bull? He said stimulus funds will funnel to the market just like it did after WWII. Well, on this 75th anniversary of VE Day let’s remember that it celebrates the defeat of the Nazis. This disease has not yet been defeated so stimulus goes into savings.
Well, yeah. I’m honestly surprised the market isn’t up 1000 after the unemployment news. The market knows what it’s doing,
Full of Bull IMO
Love how people call the bottom when it was 6000pts ago. Way to play it safe. 🤪
Another pic worth a thousand words. Main Street vs Wall Street. The Fed and treasury pumping up the 1 percent!!!