Are they buying cars? Are they building bridges? Are they ordering big turbines?
The big issue is going to be getting the world wide supply chain up and running again. Opening a restaraunt or local service industry will look good for a couple of weeks. But there is such a disruption around the world, it will be difficult to get started again.
The reason people haven’t “lost” their jobs is because the PPP is paying them through October. So BiG manufacturing layoffs won’t happen until AFTER October. You know, right after the election.
The big banks are basing their stock projection prices on 2022/23. Earnings are not coming back soon. And finally, the Fed is buying Bond ETFs directly.
None of this supports a 700 point swing. Hope—which is what this rally is about—is not a strategy.
To use a metaphor, in the last 3 months, 700 point swings have been weather, not climate. Just expected volatility,
“The big issue is going to be getting the world wide supply chain up and running again. Opening a restaraunt or local service industry will look good for a couple of weeks. But there is such a disruption around the world, it will be difficult to get started again.”
The point is it will. And that’s what the market focuses on. That it might be one or two quarters later is irrelevant to investors chomping at the bit to not miss the buying opportunity of a lifetime.