FISCAL POLICY IS LOOSE—BUT FOR HOW LONG?

The 'tourist tries to explain the stock market's recent strength

It’s always fun to see how the price action affects the mood of the market. A few weeks ago, the S&P 500 was down 20% and pundits were talking about the end of the US financial system. Today, we’ve rallied back more than half of that decline. All the negative forecasts are forgotten, replaced with rosy outlooks about the resumption of the secular bull m…