Oil goes negative a week ago and business at a stand still and S@P no lower than 6 short months ago after an 11 yr super bull. A barrell of oil was worth less than a barrell of water at one pt . Every asset class outside stocks has felt incredible long lasting pain(On the canvas for 2 or more yrs) accept for stocks at some pt the last 20 yrs .
Fed at ZIRP + trillions in stimulus + Working Group on Financial markets = Stocks propped up for as long as the charade can last
My answer to that it Much of the trillions of stimulus is just replacing lost rev with co's at zero business and zero paychecks to employees . Sure some bought bonds etc . Also much of the the supposed stimulus that flowed into stocks just replaced some of the $500 billion yanked form stock buy backs . We still should have fallen 50% and stayed down a while after the greatest bull mkt of all time .
I agree The Fed is buying everything in sight, including stocks and ETF’s. Anyone with common sense knows they have been. Really they don’t even have to buy much, just support a handful of stocks and the market can’t go down. The top 5 largest companies in the S&P have the same market cap as the bottom 350 stocks. So it’s really very easy to hide the carnage that is going on beneath the surface.
Its funny you say that. Apple ,msft and amzn have about the same combined market cap has when the market was at ath's in feb .
Truly a case of needing to trade what you see and not what you think. The bearish case always seems to be the most logical one.
What I see is when oil price is low, inflation is low. Good for the economy overall, especially for countries like China, India, Japan and Europe.