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Record-setting markets, despite threats everywhere

Economic fears are climbing — but so are the markets, with the S&P 500 and the Dow Jones industrial average both setting records yesterday. As Stephen Grocer of the NYT explains, it’s because investors have nowhere else to go.

Investors should be worried. The continuing U.S.-China trade war, a slowing global economy and simmering geopolitical tensions are all huge causes for concern. The Fed is open to cutting interest rates because things look so bad.

But they feel that there is no alternative — TINA, in Wall Street speak — to investing in stocks. Lower interest rates mean that borrowing costs will be low, which means that investing in bonds is less attractive than in equities.

It’s not as if investors are popping champagne. “They are very aware of the signs that an economic slowdown is taking place,” JC O’Hara, the chief market technician at MKM Partners, told Mr. Grocer. “But in a TINA market, where are they going to put their money?”