Lockdown Logic Rears Its Head in Stock Rally Running on Nerves
- Traders looking for firms with fortress balance sheets: Hogan
- When growth is scarce, investors look to growth stocks: CIBC
Photographer: Jason Alden/Bloomberg
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When banks started going belly up, positioning in bonds turned on a dime. Forget inflation. The country is spiraling toward a recession. Yields plunged, higher interest rates were priced out. And over in the stock market a celebration ensued.
Several reasons have been proffered as to why, in the midst of banking stress that even in a best case is likely to squeeze lending and slow growth, the Nasdaq 100 has surged to what is poised to be its best week in four months. A myopic focus on lower interest rates is one. Hedge fund machinations are also contributing. A spate of bailouts clearly soothed nerves on Thursday.