Used Car Market On Fire This recession and subsequent recovery have been highly unusual. One of the unusual parts has been the extreme demand for used cars. Social distancing has caused a decline in public transportation and airplane usage. Cars are being used to commute to work and for vacations. U
Now The Market Sees An Economic Recovery Starting in July, this has been the craziest market most have ever seen under the hood. Factor performance dispersion is higher. Starting Friday, we have seen value small caps outperform after sharply underperforming large cap growth stocks since June 8th. Th
Very Strong Redbook Improvement Narrative for the past few weeks has been the economy will strengthen in August as the number of COVID-19 cases falls. In the past few days, the decline in cases has slowed, but it’s still below the July peak and hotspots have cooled off. Next worry is about cases spi
Market Is Unstoppable Just like Friday, the small cap value stocks outperformed dramatically. Once again, the S P 500 rallied (0.27%) even though the winners of the past few months didn’t drive it higher. It’s remarkable to see the tech stocks underperforming while the index increases. Bears have be
President Trump’s Executive Orders The stimulus has gotten a lot messier than many thought it would be. This is not going according to plan. President Trump issued 4 executive orders which at first glance saved the day, but actually, according to some analysts, may not have. The stock market is on a
Big Sector/Factor Rotation This stock market never seems to go down. Either growth or value stocks do well. No matter what outperforms on the day, the S P 500 always ends higher. On Friday, there was a major sector rotation out of large cap growth stocks and into small cap value names. Even so, the
Strong Jobs Report July jobs report marginally beat expectations. Estimates were lowered at the last minute to 1.675 million which made them easier to surpass. Even still, 1.763 million jobs created is much better than expected. Many thought there would be about 0 jobs created. This report was down
Historic Insanity CNN fear and greed index rose 4 points on Thursday to 74 which is just below extreme greed. S P 500 is 9% above its 200 day moving average. It was 11.5% above it before the pandemic. It seems like we were approaching euphoria this year before the pandemic and now the trend has
Solid Jobless Claims Report The jobless claims report was actually really good this week. It was even better than last week which means the trend is improving. This report was from the week of August 1st. That means the economy improved without the coming fiscal stimulus. It tells us COVID-19 was th
Extreme Market Gets More Extreme The stock market and precious metals are on a rampage. S P 500 is up 4 days in a row, the Nasdaq is up 6 days in a row, and gold has been up 12 of the past 13 days. Gold has never gone on such a run, so you can
