From the Wall Street Journal: "The Dow Jones Industrial Average staged its best two-week performance since the 1930s, a dramatic rebound that has left many investors with a confounding reality: soaring share prices and a floundering economy." One can think of three possible explanations for this dispersion: Markets are a lot more forward-looking and are comfortable looking through what many believe is a temporary and reversible downturn in the economy; Markets are over-optimistic, conditioned by years of great success for "buy-the-dip" strategies; and Actual and expected support by the Federal Reserve has again decoupled markets from economic and corporate fundamentals. Depending on who you ask, you are likely to get a different ranking of the three ... with one quite interesting tendency: The closer the investors are to the real economy, the more cautious they are about the sustainability of the rally (e.g., what the Journal reported about Warren Buffett's approach this time around and compared to the 2008/09 crisis, and the remarks by Mark Cuban). #markets #investing #bonds #economy #volatility #equities #stocks #interestrates #federalreserve #selloff #investmentmanagement #investors #Fed #wsj …see more