THE VERY FIRST CRACK APPEARS IN THE ‘STOCK MARKET WILL GO UP NO MATTER WHAT’ THESIS $AAPL $AMZN $FB $MSFT $GOOG $DIA $DJIA
Stock market bears think bulls’ buying is misplaced and based mostly on momentum. Bulls counter that they have a thesis: Stocks will rise no matter what happens to the economy and with the deadly virus.
But now the first crack has appeared in bulls’ argument. Let’s explore this with the help of a chart.
Chart
Please click here for an annotated chart of the Dow Jones Industrial Average ETF DIA which tracks the Dow Jones Industrial Average DJIA.
Note the following:
• The chart shows the expansion of the Federal Reserve’s balance sheet. As the chart shows, the Fed’s balance sheet stood at $0.87 trillion before the financial crisis in 2008.
June 17, 2020