Stocks Have Reached a Tipping Point
There is genuine belief that the recovery can go further, coronavirus and U.S.-China tensions permitting.
Investors are leaving anxieties over the coronavirus behind.
Photographer: JOHANNES EISELE/AFP/Getty Images
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Tipping Points, as Malcolm Gladwell pointed out, can be hard to spot in advance, but when they happen things can move fast. It looks as though the market is at or approaching a tipping point right now. What happens next will be driven by the two most important narratives of the day — the attempt to reopen economic activity after the Covid-19 pandemic, and worsening relations between the U.S. and China. But a look at the markets in their own right suggests that investors have reached a point where they are prepared to believe the best.