And let’s not forget that the second half of the year will be filled with discussions on tax hikes on corporate income rates and capital gains . We will see more fiscal stimulus, to be sure, but likely not the full US$1.9-trillion tab . But this is what the market has discounted.Article content continued
Let’s assess what the markets believe and what they have discounted. The markets believe we are getting massive fiscal stimulus and it’s coming very soon. The markets believe this money will get plowed into spending. The markets believe we all get vaccinated by June and that is why we can look through all the current bad economic news and the rising death count from the coronavirus.
For one, we could see the effects of consumer spending on goods being maxed out after this past year of extraordinary strength in everything from appliances and furniture to home renovation/remodeling and autos, and so on. From March through November, American households saved US$1.6 trillion more than they did in the comparable period in 2019, and the fact that we couldn’t spend money eating out, travelling and going to concerts cannot possibly explain all of this savings build-up.
“as for services and the primary view of a looming 💰 boom, the services that have the potential for a big post-vax rebound — airlines, restaurants, theme parks, recreation services and events — come to a grand total of 4% of GDP and 6% of consumer spending. Knock yourself out”
'The market can remain irrational longer than you can remain solvent.'
Does this include mortgages as well?
I have to say the markets been stupidly high in the lower mainland
Gov did this, not a virus.