Stocks are rallying today, with the S&P 500 up 1% and the Dow up some 380 points, even as tensions rise between the US and China, and despite protests across the United States dominate headlines.
There is a huge disconnect between the headlines we get every day both in the US and overseas and where the stock market is going," Alicia Levine, chief strategist at BNY Mellon, told Alison Kosik on the CNN Business' digital live show Markets Now.
It's important for investors to remember that the stock market is forward looking, and the future is looking brighter because the economic reopening is going better than expected in both Europe and the Unites States. So far, reinfection rates haven't skyrocketed even though restrictions have been pulled back.
Tech is still the sector boosting the S&P 500, as those stocks make up such a large portion of the index.
"We've never seen such a disconnect by sectors in the US stock market," Beauchamp said, and it's reasonable to be a bit skeptical of how long this will last. Investors should perhaps also look at growth stocks and not just the big tech companies.
"We really think you should be investing where the Fed is investing, because this is a liquidity-driven market," she added.
This means corporate credit looks attractive, Beauchamp said, and gold continues to be a great hedge for investors.