If you think the Fed’s going to fire hundreds of billions or trillions of dollars of “stimulus” rounds at the coronavirus crisis and pierce the virus’s grip on mankind, on the market, and on the economy, you’re wrong.
This is an existential threat to humans, markets, and economies, which the Fed’s ammo can’t kill, but sure can make it worse.
Here’s what the Fed’s doing, what it’s going to do, why it won’t work, how you’ll know it’s not working, and how they’re going to make everything worse
“It’s all good until it isn’t” is one of my favorite sayings, which happens to be exactly what happened with the bull market’s last run-up to all-time highs on February 12, 2020.
The hot-mess rally, after news about the spread of novel coronavirus in Wuhan, China, knocked global and U.S. markets down from mid-January, looked good. It looked like virus fears were overblown when China said the rate of infection was slowing. Stocks got right back on the bull and rode it.
It was all good.
Until it wasn’t. The virus was actually spreading across China and the globe. When markets realized they’d been duped by fake news out of China, the selling began.
Now, we’re facing the opposite of “It’s all good.” Now, “It’s all bad until it isn’t.”…