Higher unemployment goes higher equities rise. Talk about a total disconnect. Wait till the monthly figures come out.... US weekly jobless claims hit 3.84 million, topping 30 million over the last 6 weeks PUBLISHED THU, APR 30 20208:31 AM EDTUPDATED MOMENTS AGO
The disconnect is on the part of The Fed believing what they are doing is going to help. Wall Street just cares about next quarter's (Fed fueled free money) bonus. So up we go higher and higher. Until ...
So markets catapulted off March 23rd lows as each week that went by more and more people were unemployed, breaking a record that every job gain in 10+ years had disappeared in 4 weeks. Markets rallied non stop even on days where the weekely unemployment numbers were totally insanely negative, now you know once they open up the economy and people get back to work, that most of that 30 million unemployment number will probably drop to 18-22 million by end of May early June. Now if the markets rallied 30% in a month off every negative employment number just imagine how high markets will go as the unemployment figures drop just as quick. Probably see s$p 3500 by june. And 4000 by 3rd quarter 2020. Yep, no holding down the markets.