It was trending ugly on Thursday. The weekly jobless claims had the bulls on the ropes, but then it started happening and kept happening until the market was green on the day and then closed near the high of the session. This was one of the bigger intraday tests that we’ve seen for a while, and it passed.
The reason isn’t easy to peg and is probably unneces-sary. If we run back to $2950 on the S&P 500, we will have another hurdle to overcome for the market. It’d be good to see it pass coupled with a more aggressive reopening of the economy. That will give participants something real to point to.
In other news:
U.S. Manufacturing Output Takes Biggest Hit in 100 Years
Virus? What Virus? Wall Street’s Denial.
Sigmund Freud coined a term for Wall Street’s attitude right now: denial. It’s a defense mechanism in which the truth is intellectually denied because it’s too painful to accept.
By my reckoning, the current rebound in stocks seems unwarranted, judging by dismal economic data and corporate earnings results. Bullishness is premature and actually serves as a contrarian indicator.
Below, I’ll steer you toward an industry that’s poised for outsized growth, regardless of the broader markets’ shifting sentiment. But first, let’s survey the investment landscape.
Stocks closed higher Wednesday, as all 50 states started reopening their economies and easing coronavirus lockdowns. The Dow Jones Industrial Average jumped 1.52%, the S&P 500 was up 1.67%, and the NASDAQ rose 2.08%. As of this writing Thursday morning, all three indices were trading in the green.
Oil prices are climbing on indications of resurgent demand and a drawdown in U.S. crude inventories. At the same time, a spike in the shares of mega-cap tech stocks, due to better-than-expected earnings, has boosted the tech-heavy NASDAQ composite to within 5% of its all-time high.
Global equity benchmarks have been rallying as well, amid a falling number of COVID-19 cases and reopening national economies.
Wall Street is bullish again…and that’s bearish.
I’m an optimist by nature and I disdain the perpetual doom-and-gloomers, but I feel compelled to throw some cold water on these overheated hopes. It’s improbable for the stock market rally to sustain its momentum in the face of brutally bad economic data. A second wave of infections could send the market crashing again.
May 15, 2019
“Least likely to succeed?”
Tom “Big Al” Schreiter here.
If there was a “least likely to succeed” award in school, I could have won that award. Clueless. Directionless. Unmotivated.
Not your ideal prospect.
But then …
I stopped giving people information. I stopped presenting facts.
I learned how stories can change people’s lives. And in that instant, my life changed. The thoughts inside my head became their thoughts inside their heads. There is no way to describe that magic. It is an experience.
- Stories are how we learn.
- Stories are how we communicate.
- And stories move people.
Sound like something we should get good at?
Quick Lesson: How to start a story.
- “Once upon a time …” (Okay, only for children’s stories.)
- “When I was young …”
- “Here is what happened …”
- “Can I tell you a secret?”
- “I have to tell you …”
- “This didn’t turn out like I thought it would …”
- “You won’t believe this …”
- “My mother explained why she was late …”
→ #2! ←
“When I was young …”
Why does this phrase create instant rapport with our listeners?
- Everyone was young once.
- Everyone was a child once.
- Everyone was a teenager once.
Amazingly simple, right?
Children beg us to tell them stories. Could that be a hint of the power we can wield when talking to prospects? Certainly.
The human mind desperately wants to put our business opportunity offer … into a story. Stories can be understood. Stories work.