It’s back to the drawing board for investors, after the State of the Union delivered no big bells or whistles for Wall Street.
There’s some lingering disappointment in the air, with stocks looking at a down day, possibly due to the fact POTUS didn’t lay down big news on a trade deal with China, outside of some promises for progress. For better or worse, the commander-in-chief also didn’t make a single mention of the shutdown.
He did say we have the “hottest economy in the world.” OK, perhaps minus Poland and Latvia, but we’re almost No. 1!
#Trump claimed the US economy is “considered far and away the hottest economy anywhere in the world.” In fact, the economies of Latvia, Poland, China, India and Greece are growing much faster.https://t.co/ffjoyAWSls
— Neil Marshall #FBPE (@ANMarshall) February 6, 2019
But no news is good news? “There was no escalation of tensions – at least not meaningfully. There was no talk of using Commander in Chief military powers to build the wall, for instance. That might be considered a win for investors, who prefer it when things do not escalate,” Paul Donovan, global chief economist at UBS, told clients this morning.
Clearly though, investors are looking for reasons to keep what has been an impressive rally since the start of the year going. And they may need to look harder now that earnings season is winding down. Saying that, our chart of the day, from Slope of Hope’s Tim Knight shows why it’s so hard for stock investors to remain in the bear camp these days.
It’s a multiyear chart of the AdvisorShares Ranger Equity Bear ETF HDGE, -0.14% or HDGE, an ETF that caters to the bears, by offering a strategy that involves selling stocks short. Knight notes it