In 2008, markets rose in anticipation of the bailout bill and began to fall rapidly almost immediately afterward. This is a good example of how monetary and fiscal policy cannot be relied upon to prevent major stock market declines.
A short rally could certainly take place, but the point is that the Fed/Congress cannot "fix" the stock market. An unprecedented economic collapse has taken place, and markets must inevitably fall to account for this.
All that monetary/fiscal policy can do is reduce the severity of the downturn, and pave the way for a strong recovery. Without the liquidity of the fed, we would already have seen a cascade of bankruptcies and a financial crisis.
In short, the stimulus will NOT lead to a quick recovery of the stock market. At best, it will prevent a complete collapse of asset prices going forwards.
A short rally could certainly take place, but the point is that the Fed/Congress cannot "fix" the stock market. An unprecedented economic collapse has taken place, and markets must inevitably fall to account for this.
All that monetary/fiscal policy can do is reduce the severity of the downturn, and pave the way for a strong recovery. Without the liquidity of the fed, we would already have seen a cascade of bankruptcies and a financial crisis.
In short, the stimulus will NOT lead to a quick recovery of the stock market. At best, it will prevent a complete collapse of asset prices going forwards.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.