Stock market playing in its own Magic Kingdom

NEWS SUMMARY: Precious metal prices eased back Wednesday on profit-taking and rising investor risk appetite. U.S. stocks rose on better-than-expected economic data bolstered by optimism over the recovery from coronavirus shutdowns.

THE BIG PICTURE/BRIEFING.COM---"Of all the news heard this week, it's not an exaggeration to suggest that the news that mattered most to a lot of people, both in the market and outside the market, is that Walt Disney is planning to begin a phased reopening of its Florida parks, beginning July 11 for the Magic Kingdom and Animal Kingdom and July 15 for EPCOT and Hollywood Studios. It was an important announcement, as it promises to save the summer vacation plans for some travelers (certainly not all) who had designs on visiting the Disney parks before COVID-19 hit. It was also important for its symbolism, as the Disney parks reopening is a reflection of the confidence that is emerging in the thought that the worst of the COVID-19 experience is behind us. The latter is certainly the hope, which some epidemiologists might dispute...That hope springs eternal, too, in the stock market, which has been flying high since March 23 with some help from the Fed, some help from science, and some help from all 50 states implementing plans to get business going again. In fact, there is so much hope in the stock market right now, you might think Wall Street has moved to Disney World's Main Street where everything is perfect all of the time - and that's just not possible....In brief, the stock market is on a ride like the halcyon 'It's a Small World' where everyone gets along in a sing-songy kind of way and the ride itself is smooth. Yeah, that's a utopian fantasy only Disney can create. The stock market sure is emulating it, though, trading at 21.8x forward twelve-month earnings (44% premium to 10-yr average) at a time when more than 40 million people have lost their jobs, politics are getting nasty again, and the coronavirus has still not met its vaccine match....It's living in Tomorrowland where everyone is back to work and there is a vaccine....The stock market has been living in its own Magic Kingdom where problems have been washed away by the Fed's fire hose of liquidity, where everyone's dreams come true, and where everything is perfect on Main Street. Unfortunately, it's a vision from Fantasyland."