Are you wondering whether it’s justifiable for stocks to be doing what they’re doing?
We continue to make new all-time highs, which makes perfect sense. More stocks are participating to the upside. More sectors and industry groups are catching a bid. And more countries around the world are breaking out.
And the bond market agrees!
This has never been about a virus or a vaccine. It’s been about credit spreads, which are hitting their lowest levels since February.
If stocks were going to fall apart and these permabears were going to be right, for once, then we’d see it in credit.
In fact, it’s actually the exact opposite:
Click on Chart to Zoom in
You might not think that stocks should be acting this well.
But the bond market does.
I’ll trust the latter.