Yesterday the market boomed up and what a day it was. It was the first 10% move in a day since the great depression.
Are we done going down now?
I wouldn't think "the down stroke" is done yet. We have grown accustomed to quick bounces, but traditionally it takes significant time to form a bottom and start moving up again. With so many out of work and businesses closed for an indefinite amount of time, it's going to take time to work through this. Like a physical injury which requires a time cycle to heal, the market will require one too. While technology can help this, such as developing a vaccine to fight the virus, technology only goes so far. Technology cannot solve every problem
Last night congress passed a fiscal program to help us get out of this tough corner. My concern going forward will be inflation incited by the Fed dropping rates to rock bottom and congress giving out cash like they give handshakes. The Fed has used most of its bullets. The federal government was way over extended and now they are doubling down. I sure hope this works because otherwise the US is going to be in deep dodo!
Stay safe.
Be smart, be well-read and be successful.
