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Either Drink the Kool-Aid or Shut Up

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Wall Street and the conference room at Goldman Sachs are apparently the only places on earth where no one seems terribly worried about the growing spread of coronavirus. Crazed investors have driven U.S. stocks into a nearly vertical ascent that will soon push the Dow Industrials to 30,000.  Over at Goldman,  a couple of their perennially bullish analysts are predicting the virus will not have much impact on the global economy and even less of an effect on America’s consumption-driven, debt-financed GDP. Tell that to China, India, Canada, Africa and a dozen other countries where officials are bracing for a dramatic slowdown. Read more about it  at ZeroHedge.  Complicating the picture for U.S. stocks is the fact that they are being viewed as a haven asset by foreign investors. Just what stocks needed 11 years into a very mature bull market that could use a rest, even in the estimation of the most wildly bullish fund managers. There is also the problem of a very strong dollar that is certain to bite deeply into the earnings of U.S multinationals. Even so, it’s hard to imagine what could possibly end America’s decade-long shopping spree or even slow it down. We’ll find out eventually, of course, but for now it’s either drink the Kool-Aid or enjoy the show from the sidelines.

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