The popular statement “watch-out below” or “the divorce between Wall Street & Main Street” currently has a strong 'logical' following. Such people (I can empathise with them and I have plenty of reading on all of this) would say the markets are insanely high at the moment.
How is it possible investors can be so optimistic given the explosion of covid cases and the rising corporate defaults from an ensuing economic outcome?
Recent bank stock prices are a concerning red flag, avoid them — Let's forget the banks, seriously put them to the side for a moment. Move on from the TSLA parabolic bubble as well; that's for another debate.
Conversely and in opposition to the bears, many traders I come across claim equities are bullish, and they are trading the signal rather than putting a narrative to it all.
However, that Bullish Narrative will find a home in a Reflationary Trade Cycle [http://bloom.bg/38sFJxG] and recent price hikes in stocks like GSL (see chart below) give us a hint to a possible colossal Bull Market that is developing.
This Bull Market is likely to be uneven and loaded with sector rotation — you will need to select your assets and entry points with discretion. Maybe, who knows, Active Management may yet have another day.
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