The divergence between the stock market and the underlying economy has gotten ridiculous. While most of the productive economic indicators are falling, the stock market keeps rallying after each correction. The market does not pay attention to fundamentals anymore and is largely driven by popular opinion, aka sentiment.
The schizophrenic stock market is primarily driven by two major supporting factors: resumption of Fed monetary easing and the completion of a trade deal between China and the US.
The problem now is that neither is likely to happen in the short run. I do think the