Why is US market soaring despite weak April jobs data? Low liquidity and interest rates are the key, says Anil Singhvi

Dow Jones index has hit record highs for three consecutive days even though the employment data for April was reported low. The unemployment rate has risen to 6.1 percent compared to the expected rate of 5.8 percent. But all this news seems to have no negative impact on the American market.

Explaining the reason behind the trend, Anil Singhvi, Managing Editor at Zee Business said that they have liquidity in the market so no matter if the news is good or bad the market is set to boom.

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He added that sometimes the market feels the economy is overheating because of which the interest rate can be increased then the economy is good and hence they show a positive trend.

While sometimes they feel job data is poor, the interest rate will remain low and hence show a positive trend. It means that the market wants to grow, and it will find the reasons for it, he added.

कमजोर अप्रैल जॉब्स डाटा के बावजूद अमेरिकी बाजार में तेजी क्यों?

अनिल सिंघवी- जब तक लिक्विडिटी और ब्याज दर नीचे, तब तक बाजार रहेगा ऊपर... मार्केट अच्छे भविष्य को देखकर लगा रहा दौड़#EditorsTake #USMarket #DowJones #StockMarket @AnilSinghvi_ pic.twitter.com/mDgKpey6Fa

— Zee Business (@ZeeBusiness) May 10, 2021

The market expert said that every economic data can be analysed in two different ways. The data cannot decide what is your take and what take you should have. It is all decided by the amount of money you have and whether you want to invest that amount. This can clearly be seen in the case of American investors, he added.

On the other hand, the employment data was low. If it would have happened during the recession, then Dow would have fallen by 500-700 points. But now there is positivity in the market, he added.

He said that it is very simple, there is liquidity in America and till the interest rates will be low there will be growth in the market.

The market expert said that the point is the market thinks something else and we think something else. We are thinking of the past and present, but the market is only seeing the future, he added.

During the current overall scenario, Singhvi suggested that investors should handle their health and wealth portfolio separately and if they mix both, then there are chances of losses.