A Wall Street chief strategist explains how the shockingly quick onset of pandemic fear may have set up both the economy and stock market for a surprisingly strong 2021.
Leaders in government, business, and finance might all be overreacting to the coronavirus pandemic, James Paulsen, chief investment strategist at The Leuthold Group, said in a Friday note.
That overreaction could be exactly what the economy needs to thrive through 2021, he added.
By some gauges, the V-shaped rebound hoped for by most economists has played out. The stock market retook its pre-pandemic highs and touched record highs just weeks ago. Purchasing managers’ indexes show the US manufacturing industry roaring back to life. Retail sales quickly bounced back in May and continue to trend higher. Read more…..
Chart of the Day
American stockmarkets have enjoyed a record-breaking streak, even though the country’s economy faces the deepest recession in living memory. Why is stockmarket performance so seemingly cut off from current events, and what does this tell us about how the economy works?