Motley Fool Money Sell in May and Go Away?
May 1, 2020
Unemployment claims surge as the stock market bounces back with surprising momentum. Major tech players like Amazon and Apple report strong financials amidst economic uncertainty, while Microsoft thrives with its cloud services. The gaming industry is evolving rapidly, moving beyond traditional consoles to embrace mobile and esports. Exciting insights on Atlassian's growth and investment potential in companies like Beyond Meat and DocuSign also take center stage, highlighting resilience in today's challenging landscape.
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Market Disconnect
- The S&P 500 had its best month since 1987, despite rising unemployment.
- This market behavior highlights the disconnect between short-term market reactions and economic reality.
Market Optimism
- The market's resilience stems from the belief that the pandemic is a temporary setback.
- The focus is on buying time until treatments or vaccines emerge.
Market Concentration
- The market is currently concentrated, with five companies making up over 20% of the S&P 500's market cap.
- This level of concentration hasn't been seen since the dot-com era.