Our economy has recovered mightily since the dark days and deep bottom of 2020. In the U.S. we are fortunate in many ways, but we may be pressing our luck.

The economy expanded at a 6.7% annual rate in Q2 vs 6.3% in Q1, according to Federal Reserve data. Holiday spending is expected to be up from 2020 as 30% of consumers intend to spend more this shopping season, according to the Wall Street Journal.

Bull markets are said to climb a wall of worry and boy do we have numerous concerns.

Money is easy, stocks are rising, and bullish investment sentiment remains strong. Covid-19 cases are now rising at a concerning pace in unvaccinated areas of the U.S. and the world at large.

In summary, most global equity markets went higher, Bitcoin went down, and safe havens like U.S. Treasuries and Gold lost value. The “growth versus value” debate continues as does concern over cyclicals versus growth stocks.

Covid vaccines have now reached 50% of the US population. Earnings came through on a high note in Q1-2021 as the economy reopened. Earnings grew 52% Y/Y, the highest since Q1-2010 with 86% of companies exceeding estimates.