Welcome to my video presentation for Monday, May 17. For a deeper dive with more details, read my article below.
Stock market volatility has increased as conflicting economic data come to the fore, but after a brief selloff last week, investors are bullish again. To quote the British World War II slogan, investors have decided to “keep calm and carry on.”
Volatility is likely to stick around in the coming weeks until a few unknowns are resolved, such as the fate of President Biden’s proposed infrastructure plan. I wouldn’t be surprised to witness occasional selloffs that are triggered by unexpectedly adverse news. But overall, I expect stocks to maintain an upward trajectory this year. The bears right now constitute the “dumb money.”
To be sure, bitter fighting between Republicans and Democrats in Washington (as well as internecine warfare within the GOP itself) is keeping investors on edge. During my long career,…