The Celeri Journal #109: Record Stock Highs…Coming Soon

Written by Michael

On July 2, 2020

Global Markets Recap

CNBC: “Record highs coming in the 2nd half of the year, says Marko Kolanovic of @JPMorgan.” One of the most widely watched Wall Street analysts, Marko Kolanovic, is telling clients – or anyone who watches television – to look for all-time highs later this year. Mr. Kolanovic is an expert in equity options pricing & theory. Maybe he sees what others do: with so much liquidity floating around, and the Vix well off highs from earlier in the year, stocks have only way to go: up. His formula: extraordinary stimulus + coronavirus gets under control + low market participation = new all-time highs by Christmas. I feel bad for shorts; I do. The old maxim “Don’t Fight the Fed” takes on a wholly new meaning in a global pandemic. The revised mantra should be: “Buy Whatever the Fed’s Buying”. It’s like that great line from “When Harry Met Sally”: “I’ll have what she’s having.”

Congress may go quiet with the election coming but the Fed won’t. They have permanently set the bar exceedingly high & there’s no indication they’ll let up soon. Inflation is not a concern for them but joblessness is – so they’ll keep cooking up an array of alphabet soup aimed at jimmying open employment any way they can until more people are back at work. Restoring confidence goes a long way in meeting this objective.

Limited preview. Subscribe below.

You May Also Like…

Episode 25 with Leo Lu

Episode 25 with Leo Lu

On Episode 25, we welcome Leo Lu, Vice President on the Digital Partnerships team at BNY Mellon. Leo graduated from NYU Stern School of Business with a Bachelor’s degree in Finance. He has a background in fintech partnerships, venture investments, and has experience...

read more

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *