“A market like this doesn’t end this quick. We are looking at massive volatility until year end.”
We are in uncharted territory here. This crises was not caused by any financial breakdown. It was caused by the fear of what may happen with the introduction of the China Virus. The media induced and promulgated panic was what caused the sell off since we know the market tries to “see” 6-9 mos down the road and buy (or sell) accordingly. Initially the were pricing in an Armageddon event so the huge sell off but with additional information becoming available the reality is beginning to set in that this will not be a world ending event and the stimulus is believed to be very helpful in getting us thru this.
A good analogy would be to imagine what would happen to our markets if a gigantic meteor were sighted on a collision course with earth and it was thought it would hit the North East United States. The markets would immediately tank big time, gold would sky rocket etc. Then 5 days after the bad news it was announced there was a mistake made and the meteor would actually completely miss us. The markets would sky rocket back to where they were because their was no damage to the economic fundamentals.
This event we are going thru is similar. Although there is economic damage done now the huge stimulus is helping greatly to get us thru it. All the money being sent to individuals and businesses will flow back into the economy propping up consumer spending which is 2/3 of our economy.
The meteor analogy involves a likely “all clear” signal. I’m not sure that is how a pandemic works.