I just don't understand why the Dow is going up...

[Bernardo de La Paz]

7. The market is over-priced and top-heavy with 7 stocks. And the Dow is bogus. Quit referring to the 1890s.

The market is probably overbought. Last couple of months a higher than usual amount of the buying has been by retail investors who are historically notoriously wrong about the stock market. They are so proud of themselves buying the April dip and have even have been congratulated for that in the stock market media. But they probably don't have much left to invest.

The economy is resilient but tight and hence a bit fragile. It is fraying at the edges. Job statistics are ticking down ever so slightly. West coast port traffic is still down. Tourism is down and the economic effects haven't rippled out yet. Crops are rotting in the fields but haven't affected stores much. Canadians are buying fewer US products. Federal government layoffs are mostly delayed until September because of "deferred resignations".

Tariff taxes amount to a supply shock, disrupting supply chains. The effects take a bit of time to ripple through but can have the effect of stagflation like the 1973 and 79 oil supply shocks. That puts the Fed Reserve between a rock and a hard place.