The problem with the market is that financial risk is still rising in spite of the aggressive easing of the Fed and Treasury. There is little or no hope for the market to rise as long as financial risk keeps moving higher (click on graph to enlarge).
Furthermore, some surveys show there is too much optimism that we have hit bottom. Well known market technicians pontificate on TV we had capitulation. I hope they are right.
Rising financial risk, however, is not the ideal background for equities.
More, much more when you subscribe to The Peter Dag Portfolio by going to https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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