To no one’s surprise, April was an absolutely awful month for the economy. Numbers were released that showed a GDP contraction of 4.8%. 30 million people lost their jobs and the unemployment rate reached over 20%. Many businesses remained closed.

But this was all intentional. We shut things down on purpose and everyone knew it was coming. The terrible economic numbers did not shock market participants. We were numb to it after a near 40% drop in stocks already and daily bad news. That previous market crash was discounting the data that we just received.

In other words, bad economic data was already priced into the market. In fact, it was overdone. We know this because stocks bounced back hard. It may just be a temporary recovery but this has been a month-long rally where substantial money has been made from holding on and rebalancing portfolios. Since the market low on March 23rd, the Dow shot back up from roughly 18,000 to 25,000. It was a 50% retracement from peak to trough.