We're down for the week.
You wouldn't think so, listening to the pundits but we started the week at 3,916 on the S&P 500 (/ES) and this morning we're at 3,910. Keep that in mind while you read your Financial Propoganda – does that FACT correlate to what you are seeing and hearing in the media. Last week we passed a $2Tn Stimulus Bill, this week Powell and Yellen testified that the Fed and the Treasury are prepared to boost this economy forever and Biden just doubled the number of vaccinations they plan to distribute by the end of May to 200M AND the Democrats vowed to pass a $3Tn Infrastructure Bill, even if they have to do it over Mitch McConnell's dead body (preferably).
What has all that done for the market? NEGATIVE 6 ponts!
So, what will it take to get us UP 6 points next week? Colonize Mars? Water into wine? Straw into gold? I think they are truly running out of ideas to stimulate the economy and, unfortunately, all of our hopes and dreams for a better, brighter, lower-interest future are already baked into these record market valuations and there really isn't anywhere else to go but down.
"Keep on (love keeps lifting me)
Lifting me (lifting me)
Higher and higher (higher)
Listen, Now once, I was down-heartedDisappointment, was my closest friend" – Jackie Wilson
Jackie Wilson is right, without a constant flow of love (or money) from the Fed, disappointment will be our only friend. Perhaps the Fed will truly love us forever – they certainly promised to do so this week but again – how much MORE in love can they be? I know people like to say "I love you more and more each day" and that's fine with an emotion but it's not real love the Fed is doling out so much as MONEY and money can be measured and how much more than this year's promised $6Tn ($500Bn/month) can they really love us?