Are we back to bad economic news is good stock market news…

In the news:

[Reuters] Stocks gain after sharp slowdown in May jobs growth

[CNBC] 10-year Treasury yield drops below 2.06%, its lowest since September 2017, after bad jobs report

[Reuters] Dollar falls to 2-1/2 month low after U.S. jobs data disappoints

[CNBC] Jobs creation slows dramatically with payrolls up just 75,000 in May, much worse than expected

Meanwhile the New York Fed estimates are catching down to our below 1% GDP calls:

If bad economic news sending the stock market soaring does NOT make sense to you, then you are trying to think rationally. It makes perfect sense when you consider how distorted our monetary and fiscal policies are.

But knee jerk reactions do not foretell long-term future returns in the stock market. We need to look at all the leading indicators of the stock market to know if this rally has legs or is a head fake.

Invest smart,

Michael Bond

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Categories: Perspectives, TSP Charts