America Needs To Open Its Economy State By State

Thursday’s session seems so long ago, but there are still certain aspects of that day we need to look into, including the resolve.  Financial media will always focus on any kernel of negativity, so if the Dow finishes +1,000 points, but was +1,100 higher, the headline will read: Dow closes higher but off session highs.

I’ve been accused of looking for silver linings and wearing rose-colored glasses.  That’s not accurate. I see silver linings easily with those rose-colored glasses, as I’m always seeking opportunities. 

What popped out to me Thursday at the close was the resolve but also the internals.  For the first time since February 21, there were more 52-week winners than losers on the New York Stock Exchange.

This is a very handy tool toward marking market bottoms.  It can’t be a flash in the pan, but winners beget winners and change the gravitational pull of the market.

This morning, Goldman Sachs has sharpened its pencil again, and now say its worst-case bottom of S&P 500 hitting 2,000 probably won’t happen.  In other words, they think the bottom has been put in.

Turning the Economy On

Living in the epicenter of the coronavirus pandemic in America, I hear lots of opposition to opening the economy.  But just like everything else, the east coast folks might want to check on the rest of the nation. 

Recommended

Whoever Edited this Clip About Biden Deserves Major Props...And Trump Certainly Noticed It Matt Vespa

Advertisement

Are we really going to keep states that haven’t been hammered with COVID-19 on lock down until folks in Manhattan feel better?

The state of Nebraska isn’t taking its cue from New York and others are also deciding on when to open their economy based on local parameters. 

I think California will have to open its economy sooner rather than later based on its success in curb growth of the virus. 

I go into great depth on the topic in this week’s Payne’s Perspective (contact research desk or your rep for a copy).

Portfolio Approach