Stimulus Packages

[Eurobonus]

It seems as if people think that the stimulus packages are free. At some point in time, it has to be paid for one way or another. Either through budget cuts or most likely accelerating inflation once it takes hold.

Furthermore, once I have extrapolated out the cancelled dividends, cessation of share buybacks and the massive increases in unemployment, I just can't see how the markets can be anywhere near the levels that they are right now - S&P 500  close to 2,800. It seems as if investors believe that there will be a quick V-shaped recovery. I sincerely hope that this is so, but my brain says that this is wishful thinking.

Be interesting to hear your thoughts on this.

[Eurobonus]

Another 6 million plus unemployed in the US. Most economists forecast well over 15% unemployment rate by the end of this month which is worse than the Depression of 1929. But the markets are soaring. Is there something I am missing?

[Kingfield]

I feel the same, which is why i'm looking to short the ftse 100 and 250 in the coming days.

 

I'm rattling my brain to see what justifications there are for the soaring markets right now, it just does not seem correct of what we are going to see in the coming week. Especially in the UK where we will almost certainly be given a lockdown extension on Monday evening. 

[dmedin]

'The market is always right' 🤥

[RANZ]

More people are dying and cases are on increase worldwide. The way market is going up it will come down in the same way. As you said all these stimulus packages are kind of a loan and need to be paid one day. But QE always results in surge of stocks like in 2008 etc. 

But this time it's different than 2008 this time collapse will be everywhere not just banks.

I'm just thinking may be markets are high on the prospects of oil price decision.