Virtually every day we continue to see equity markets move higher–in spite of the news on Covid 19 and poor employment prospects.
Not to repeat myself too often, but I am just sitting tight–no buying and selling. My damn real work is getting in the way of doing what I really love which is working on the website.
We are just a week away from the end of the unemployment supplement money–that $600/week extra which has served to ‘juice’ the economy. Will we see a new program from the federal government? Certainly the states have no ability to pay even modest amounts–most of them are totally dependant upon the federal ‘printing press’.
Dovetailing with the upcoming reduction in unemployment payments we are seeing jobless claims rise again–1.4 million new claims last week.
This is not going to end well–but at what point markets begin to head sharply lower is anyone’s guess. With all of the liquidity the government has pumped into the economy individuals, banks and corporations are all holding bushel baskets full of cash–at what point this changes–who knows?