After steep declines yesterday, stocks rallied today. Each of the major indices were up over 1%, recovering yesterday's losses and then some. this was enough to bring the S&P 500 to a new all-time high.
After the recent Ukraine-fueled pullback, this represents a return to sensibility in my opinion. Why? I think Jim Cramer puts it best in his Bristol-Meyers Theorem: "What does the Ukraine have to do with the price-to-earnings ratio of Bristol-Myers?" Nothing. The fundamentals aren't affected at all by the tragic events in Ukraine. While, as I said in yesterday's blog post, I knew the market would be hurt by this, that is just because of irrational, short-term fear and not logical investing for the long term. The only way the company gets hurt here is if a world war results from this, which is next to impossible. That's why I think yesterday made no sense and today was what should happen after that.