It seems like there’s an endless amount of bad news for the economy.

More than 25 million Americans filed for unemployment in the past month. The U.S. federal budget deficit is close to $4 trillion. And many oil companies are on the verge of bankruptcy.

But the stock market’s 5% rally since Wednesday shows that many investors are still optimistic despite the economic downturn.

They believe that businesses will reopen sooner rather than later and that stocks will continue to bounce back and move closer to their all-time highs.

In today’s Market Insights video, my colleague Jeff Yastine and I discuss why you should enjoy the rally … and why you also need to be cautious before you rush to buy stocks.

Regards,

Ian King

Editor, Automatic Fortunes