This Chart Shows Where the Market Could Head Next
July 23, 2020 at 15:31 PM EDT
This morning, another 1.4 million Americans filed for unemployment benefits as COVID-19 continues to ravage the country. Bearish traders are concerned about the growing number of coronavirus cases and the 53 of million Americans who have filed for unemployment in the last 18 weeks. They think the market has gone up too far, too fast, while the economy could easily be forced to shut down again. That would have a negative effect on stocks because many businesses won't even be able to operate in a limited capacity as they are now. But the bulls think governments around the world will backstop another major drop in stocks like they did back in March. That's where the mantra, "don't fight the Fed" comes from. Bullish investors are anticipating trillions of dollars' worth of economic stimulus to be pumped into financial markets that will, in effect, put a floor on stock and bond prices. The bulls also expect governments to keep interest rates low. The post This Chart Shows Where the Market Could Head Next appeared first on Money Morning - We Make Investing Profitable . Read more... To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2020 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.