My Brain is Full

This week more than 25% of companies in the S&P will be reporting earnings which means another week of gushing news on US stocks.  This has been a robust recovery indeed as GDP for the second quarter is up 6.5% and would have been even higher if not for an unexpected $166 billion drop in inventories. As we try to make heads or tails of this flood of information, we need to do comparisons versus the economic shutdown driven by Covid in the past and the effect of labor shortages, Delta strain, and supply chain snafus in the future.  For now, and as the “buy the dips” mentality prevails, it looks like the Bulls have the edge as we head into the sometimes treacherous end of summer, Sep-Oct time period.