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Brian Wesbury 101: How can stocks rise while the economy is down?

May 22, 2020
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Brian Wesbury is the Chief Economist at First Trust Portfolios. He is trusted by many of my financial advisory peers and is no stranger to those who follow this Henry Wealth Management BLOG.

In his latest WESBURY 101 video filmed on May 20th, Brian shares four key reasons why he believes stocks are increasing and remain largely undervalued, with much room for growth:

1) Publicly listed companies didn't get there by accident.  Many possess the needed technology to operate in this shutdown environment and have the resources to remain open.   

2) States are reopening and "greens shoots" of economic growth are appearing.  

3) The overall US market remains undervalued.

4) The money supply is exploding.

While some economists and pundits have argued that stock increases starting as of April have been mere "sugar highs" (we could say 'fake highs') Brian is not in that camp and rather believes that investors should be optimistic. Henry Wealth Management agrees and in fact, our BLOG post from May 20th entitled "Is the Market Springing Back"  demonstrates as much.

Please invest 5 minutes now to listen to Brian and see if you agree also. Click here to watch the latest Wesbury 101 -  Corona Virus, Stocks and the Economy

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.