as you know. the PPP kicked in mid april. and that made millions of small businesses to keep their employees on payroll for 8 weeks.. so that will end mid June.. add one week.. so the UE numbers will keep falling and then TAKE off around end of june. this entire payroll protection program was to make business ride over this pandemic and open for business but it will be unfortunately the other way and it has only delayed a round of bankruptcys, forloughs, temporary or permanent shutdown will occur for a large number of small businesses. and folks will start applying for Unemployment...
That's too logical of an explanation! When has the market ever responded in a logical way? Who knows what will happen with the market but I expect more goodies from our government.
I would wait for the details of the next stimulus before I would get too bearish. They will ease the restrictions on the PPP and likely make significant additions to the SBA program which will kick the can down the road.
You think the Fed and Government spent trillions just to delay the crash for an extra few months? When PPP runs out, they will have “Super PPP” next. Followed by “Obscene PPP” in the Fall, and “Ludicrous PPP” in the winter.