The stock market fundamentals may be less of a factor for the rise of the stock market. The jobs report was higher than expected. The shorts had a huge squeeze. The amount of available cash reserves from the big hedge funds not yet ready to pull the plug on creating the next market correction will liquidate to find a higher yielding derivative. The buying frenzy ensues. Lets enjoy the moment! We would advise our clients to ring the register for ant least 10% of their portfolio.
Our research is exploring the relationship between the deeper excessive cash reserves of the "legitimate investment firms, banks and offshore accounts" that is held by the proverbial 1% of the world's wealth. We will initiate our report beginning in the late 1970s to late 1980's. If we do not learn from history, we are doomed to repeat it
The HSBC scandal prompted the United States Treasury and Justice departments to fine HSBC a record $1.92 billion after finding that the London headquartered bank repeatedly helped the world's most violent drug gangs to launder at least $881 million in ill-gotten gains and to channel money from numerous countries against which the U.S. has economic sanctions. The slap on the risk fine may have been attributed to the HSBC account distribution to the major corporate hedge funds that have now became classified an a person. If you can trace the cash flow you can trace the market charts. But while in Rome...same game different game board.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.