Market Ethos – Time to fade the Fed?
The S&P 500 just had its best week since 1974, on the back of improving signs in the COVID-19 health data and a little $2.3 trillion stimulus from the Fed. With half the bear market drop recouped, where to next? Our near term concern is the market is pricing in a V shaped recovery. At some point the economic and earnings data may begin to weigh on markets, and there is months of poor data ahead.