The US stock markets is depressed. The economy is in trouble and inflation is high. Incomes have dropped and cost of living is high.
Against this backdrop, the US stock market rebounded last night. The investors bought shares because of a small dip in the bond yields.
The real reason, TKL suspects, is that there is too much money lying around. The US govt printed a lot of money. The money has to be invested somewhere.
Many investors are waiting to buy stocks at depressed prices. There is an oversupply of money that needs to be invested.
What will happen from here? Nobody knows. It could be a "dead cat bounce" and the stock market will plummet again. It could also be a recovery.
My financial crystal ball ECB is also confused. He said - Boss, the stock market may crash, but may also recover.
What kind of rubbish expert is ECB?
Tan Kin Lian