March 15, 2021, 6:05 pm EDT
Another New high
Post stimulus rally continued since last week. Dow jumped another 174 points or +0.5%. Nasdaq also made significant gains of +1%. When looking into the winners from S&P 500 as shown, it is easy to see retailers (JWN), airliners/cruises (UAL, AAL, ALK, RCL), and hotels (LVS, MGM) dominated the list.
Following another money-printing policy from the US government is on infrastructure projects.
Stock markets keep betting on an unlimited supply of the US dollar, low-interest rates, and market-friendly policy to drive up stock prices. Although this method still works after more than a year from COVID-19, the recent low volume on record-high indexes seems to point out potential exhaustion.
At the same time, economic activities could be expanded when more people take vaccines and begin traveling, shopping and vacation. Thus, this force may bring in real economic power for more jobs and spending.
Investing strategy should be in-sync with both policymakers and market conditions. It means that investing with caution along the way.