From the article: “Policymakers have repeatedly called the battle against the novel coronavirus a war. As in wartime, federal expenditures are rising sharply while tax revenues are being hit by the lockdown. Both World War I and World War II—and, indeed, the Vietnam War—were followed by nasty bouts of inflation. If that happens again, policymakers today being cheered for their swift, decisive action will instead have to answer for their grave lack of foresight.”
I don’t think there’s an investor out there that would like to know where the stock market is going. Has it hit bottom, and if not, when will it? Will the market then come back fast or slow?
In short, no one really knows. But Ben Carson over at “A Wealth of Common Sense” has a pretty good theory.
Basically, the market has matured since the great depression. And we have come to a point where an aggressive fed has taken some of the risks out of the market by playing a larger role in the economy and management of the financial system, and in turn, assets.