With a sharp advance off the recent lows perhaps the stock market sees less bad down the road - for now.
The problem for index fund owners is they own all three buckets and there are a lot more companies in the third bucket than in the first two.
This argument of fully discounting the economic damage that has been done is at the heart of the current market debate.
The big question at this point is whether the market has overshot in predicting that the worse is over.
How can we trade so strongly amid massive unemployment, a collapse in oil, and numerous other economic issues that are just starting to unfold?
More than 450 quarterly reports are on tap, including 105 S&P 500 constituents.
And when it comes to gyms and fitness, I would much rather be long Planet Fitness than Peloton. Not even close.
There is likely to be some period of consolidation as market players assess the many crosscurrents that are occurring.
There will be some long-lasting changes in behavior that will impact the economy in many ways as it recovers.
When it's beaten you will wish you own stocks, especially the stocks that are right now lethal to your portfolio.