There will be dozens, maybe hundreds, of books written about what we experienced this week. Wednesday, January 6th saw our country on edge as our nation’s Capitol was stormed by a bunch of so called “patriots”. This happened as an historical global pandemic continues to rage across the land. One whose death toll reached a record high yet again this week. We are now suffering American losses greater than a 9/11 every day, but have somehow become numb to it. All the while, the stock market closed higher and finished the week at record highs.
Makes perfect sense, right?
One can easily rationalize the market moves by citing a potential stimulus package, more government spending on infrastructure, record low interest rates and an accommodating Fed. Makes sense to me. Heck just look at the charts. The financials are waking up from a decade long slumber and are breaking out to all-time highs. This is not the leadership you get in bear markets. Speaking of the charts - my friends Josh Brown and JC Parets broke down some key charts this week to drive home these points. Check them out here.
To put this market in better perspective given current conditions, I’ve attached my favorite video clips of the week. The first is from the best in the biz - CNBC’s Mike Santoli. The second is from another great, Jenny Harrington, on CNBC’s Halftime Report.
It’s not easy to explain the market disconnect to people that don’t follow it like many of us here. Hell, I was shocked we shook off Wednesday’s chaos and closed out the week at record highs. We even rallied in the face of a Kim and Kanye divorce and the most unlikely of all moves - the Mets pulling off blockbuster deals and spending money in the free agent market.
One shocking thing after another - none of it makes sense. Then again the market doesn’t care what we think. I’ve always said and will continue to preach to block out the noise, but man was it loud this week.