Adopt Stock Market’s Optimism

Adopt Stock Market’s Optimism

The lower Manhattan sunrise mirrors the growing stock market optimism (Photo by Gary Hershorn)



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Watch Wall Street's attitude and actions to understand this market. All those stock market warnings miss Wall Street's key understanding: The civilized world is trading in its 2020 hard times for 2021 opportunities. Times may feel troubled and uncertain, but the improving trend is clear.

Disclosure: Author is fully invested in stocks and stock funds

Today's many observers' warnings mistakenly use healthy developments as support for concern. They see the signs as inconsistent with today's political and pandemic angst. Therefore, their reasoning goes, investors are over-exuberant and prices are over-extended.

Here is a list of the signs, along with the parenthetical healthy conclusions.



The banking system has "excess" deposits (available for future lending)

Inflation is starting to rise (from its low level)

Multiple IPOs (are successful raising capital for new and established businesses)

Corporate bankruptcies (provide an unemotional process for restructuring or dismantling troubled businesses)

Enormous U.S. Government borrowing and Federal Reserve money issuance (help fill the economic holes created by the temporary pandemic business restrictions)

Bitcoin/cryptocurrency rise is a bubble (that