I know it frustrates people when the stock market rallies on bad news. Last Friday the Bureau of Labor Statistics announced that 20.5 million jobs were lost in the month of April alone and stocks appreciated 1.7%.
Since businesses were forced to close, and shelter in place orders were issued state by state, the total number of Americans filing initial claims for unemployment benefits has hit 33 million.
Yet, stocks (as measured by the S&P 500) have rallied 31.25% since the market bottomed on March 23rd through last Friday. Why?