SHOULD WE BELIEVE THIS RALLY AGAINST A BACKDROP OF IMPONDERABLE ISSUES?
Market machinations never cease to amaze me. Last week saw that extraordinary three-day stock market rally in the US and Europe – DJIA up by 21% and the FTSE 100 up by 16.5%. Yet the economic data, though much of it temporary, is dire – unemployment forecasts from respected economist suggesting 8.5% in the UK by July. Then the St Louis FED is of the opinion than 47 million Americans could lose their jobs in the second quarter amid the coronavirus pandemic, sending the unemployment rate to 32%.