A few more data points—4/2/2020
Today, we got our second read on the job market while in the midst of the pandemic. Last week, 3.3 million people filed for unemployment benefits. This week that number ballooned to 6.6 million.
Interestingly enough, as I type this, the market is up over 400 points.
We will see how this plays out over time, but usually, when faced with uncertainty, the market prices in a worst case scenario. And, frankly, that worst case scenario might be the worst case plus a little extra.
Given that we just saw 6.6 million people lose their jobs and the market is up (at least for now), does give some credence to the fact that the market overreacted and priced in even more economic damage than losing 10 million jobs in 2 weeks.
Time will tell, but we are watching very closely.