The Nasdaq 100 Index notched its third straight week of gains, its longest weekly winning streak since April, as investors grow so comfortable buying riskier stocks that on Thursday they almost pushed the tech-heavy index up 20% from its June low.
But this rally is running on shaky ground at best or is borderline “silly” at worst, per Michael Burry of “The Big Short” fame. A good chunk of it is built on the back of plunging oil prices, which are below $90 a barrel for the first time since February. And while corporate earnings didn’t collapse as many investors feared just a couple of weeks ago, forecasts for the future are dropping precipitously.
