Thursday, May 2, 2013

Why The Stock Market Has Been Bulletproof To The Bad Economic News

.BI reports: "..The stock market -- even considering today's sell-off -- continues to be near all-time highs. What gives?

In a note published on Monday, Morgan Stanley's Gerard Minack articulated the mentality of the market participants. ...This resilience is in part understandable: prior years’ mid-year setbacks typically had an overlay of systemic stress. This, for now, is pure-and-simple macro disappointment.
But the more important factor seems to be the strong consensus that any weakness will be temporary, with growth set to improve in the second half. ...Despite downgrading forecast June quarter GDP (partly as payback for upgrading March quarter forecasts), second-half forecasts are little changed, and point to significant acceleration later this year…..

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