Market Short Means Higher
Washington shenanigans continue, with debt ceiling debates, etc. It’s exhausting to watch. For risky markets, it looks like there is ‘relief’ over the prospect of an agreement, but that is not what I would use as the explanation for the markets being higher.
Is it part of the explanation? Yes. Is the AI craze partially responsible? Likely. However, an additional reason can exist here: managers have been overly pessimistic (there have been plenty of reasons, like the regional bank crisis). We have seen this dynamic before, we will see it again.