What did the markets require for a Friday bounce? A trifecta in stimulus.
The Fed announced its formal intention to print electronic credits to buy Treasuries all across the Treasury bond curve (a.k.a. “QE”). Congressional reps as well as White House spokespeople indicated that a stimulus deal was close. And Trump declared a national emergency to free up additional dollars of fiscal spending.
All of that jazz… not to forget a basket of “dead cats.”
Nevertheless, there are classic indications of the stock bubble all around us. The crypto craze? It logged a -44% move since the Dow’s peak on 2/12/2020.
What about the ultimate in “grower” opportunity? The marijuana revolution should be doing alright, shouldn’t it? Or not.
Maybe central banks like the Federal Reserve can print our way back to prosperity. Maybe.