Stock Market wants to Ignore Recession Risk…

As the U.S. economy heads into a reality check on the first 100 days it is becoming apparent that stocks want to focus on how lower consumer confidence, employment and production will make it more likely that the Fed will lower short term rates, and that this will juice stock market prices.

That is the background formula as negative numbers are a possibility this week on real first quarter GDP and employment numbers.

Of course, the Fed knows why the numbers are declining and it is not due to interest rates being too high.