Yes tend to agree with this too. The market definitely seems to be disconnected from the economy at this point and it is easy to speculate that cheap money, new money and the emphasis of the powers that be on supporting the market at seemingly any cost are the drivers. OTH it may be that many see the market as the only game in town at this point. I know nothing but am not going to be surprised to see the market below 18k again but it may take a year or two or more or never... It is just hard to imagine that we aren't going to see a sustained recession given the hits that so many parts of the economy are taking and the effects of reduced incomes and uncertainty among consumers.I agree with the PE ratio being up too high so the market is over valued.
Why is there a market rally in a pandemic? That does not make sense. But wait. I have a saying: If it does not make sense, then it's politics.
We all know who is in power now. We all know that the Fed is semi-independent. We all know that the Treasury Department is not. I like to speculate on whether there is a connection between the market rally and the people currently in power.
Too many people are focused on the opening up of the economy in June and July. Not enough attention is being focused on the election in October and November. If my speculation is true, then the stock market may potentially crash again when we get near or after the actual election.