How can the stock indexes be so high during the pandemic?


With 26-million out of work you'd think the stock indexes would be tanking. But the S&P 500, which reflects a broad view of the economy, is just 16% away from its all-time high. What gives?

KTRH moneyman Pat Shinn says we have the Federal Reserve to thank for propping up the markets.

"The Federal Reserve has gone into the open market; they now have over $6-trillion worth of assets on their books, basically buying up everything, with the exception of stocks, in order to support the market."

Amazon makes up a big chunk of the S&P's value and Shinn says the pandemic is right up Amazon's alley with the need for so much to be delivered.

Plus, Shinn says the markets are looking forward and the economy is going to explode soon.

"We think all of this stimulus that's to help keep the economy afloat is going to be like fire or turbocharge the economy when we start to come out of this."

Tech stocks, health care stocks and consumer staples are holding things together.


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