Up and up we go.
It's truly amazing that the Nasdaq has actually doubled off the March lows and it only fell 30% in March so we're up almost 50% from our pre-pandemic levels and was Trump really that bad for the economy that his policies were holding the market back from a 50% gain at the time?
Much as I disliked Trump and his policies, no, they were not responsible for our "poor" market performance. The Nasdaq was around 5,000 when he took office in 2017 – back to where it had peaked out in early 2000 – and Trump's tax cuts and low rates and weak Dollar rammed us up 140% higher by the time he left office to just under 12,000. We were back to 7,000 last March on virus fears and now it turns out the virus must have been great for the economy as we're up to 14,000 – with Biden adding 2,000 more points (16.66%) in just two months of presidenting.
Will we ever see a top to this market or will it just keep going and going? CNBC had Tom Lee on yesterday and he predicts a "face-ripper rally" in April – as if 8% per month is a slow start to the year. "I think there’s a level of surprise coming in April because we already had a strong finish beginning Wednesday of last week. It’s really three days of strong rallies and history shows this is really building up to be what could be a, potentially, S&P 4,200 before the end of the month,” Lee said.
Well, 4,200 is only up 5% for the month, so it's actually slowing and not ripping any faces that I can see but it makes a good headline and sound-bytes are what matter, right? Meanwhile, the entire stock market rally is nothing compared to the explosion in Crypto