The rally in the stock market in the past few months has been impressive.
A big reason is that traders are accepting that rates will stay low for a very long time and that the top of the Fed funds market will probably be only 2%.
The S&P 500 gained 10.8 points to 1985 today and we’re now so close to 2000 that it’s almost inevitable. Since May 15, the index is up 6.8% and 14.25% since the lows in early February.
S&P 500 — this is what an economy growing at a 0.2% pace in H1 looks like.
With non-farm payrolls out of the way, it’s tough to envision anything to derail the stock market rally in the near future.
