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Pandemic bear market is over as stocks hit record highs
[Washington Examiner] Stock markets hit their first records since the pandemic began, erasing a historic plunge during February and March.The S&P 500 closed about a tenth of a percentage point above its previous high of 3386.15 on Feb. 19, making the pandemic bear market the shortest in history. The record highs for the S&P 500 and the Nasdaq come despite the millions of people who are out of work due to the coronavirus pandemic. "Many continue to wonder why stocks are at new highs with 10% unemployment and nearly a million people filing for initial unemployment claims. The truth is, economic data is backward-looking, and stocks are looking ahead to a much brighter future," said Ryan Detrick, chief investment strategist at LPL Financial, according to Market Watch. Shares of tech companies, which have been able to capitalize in many cases on mass social distancing, led the broader market to regain losses over the past five months. "Markets are seemingly encouraged by a nationwide improvement in coronavirus data after a spike in various parts of the country last month," Brian Price, head of investment management for Commonwealth Financial Network, told Yahoo. "Big Tech and certain consumer companies like Amazon continue to do well." Price added that investors will have to remain "vigilant" in the coming months for another resurgence in coronavirus cases similar to what the United States experienced over the summer. Other risk factors that could affect the market’s recovery include failure to pass another relief bill and the upcoming elections. Posted by: Besoeker 2020-08-19 |
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