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Indeed.

The biggest take home lesson for me during the GFC was that governments will stop at nothing to keep asset prices inflated. The alternative is literally economic, social and political turmoil.
The sooner i accepted that, the easier it was too understand why markets behaved the way they did.

Coronavirus was an uncontrollable factor. It wasn't a man-made phenomenon (or at least the consequences weren't).

And if you're in the camp that thinks this will all crash once stimulus is withdrawn, ask yourself why that is?
Consider this: the US feds funds rate peaked at 2.5%. they began tightening monetary policy in 2016, 8 years post GFC, but tightening nonetheless. Then what happened? Markets reached all time highs in 2019.

Crises come and go. We live in a society where inflation is critical to production. So long as central banks are mandated to aim for maximal employment and 2-3% inflation, the markets will be ok in the long run.

<blockquote data-quote="waterbottle" data-source="post: 1077477" data-attributes="member: 56541">Indeed.The biggest take home lesson for me during the GFC was that governments will stop at nothing to keep asset prices inflated. The alternative is literally economic, social and political turmoil.The sooner i accepted that, the easier it was too understand why markets behaved the way they did.Coronavirus was an uncontrollable factor. It wasn&#039;t a man-made phenomenon (or at least the consequences weren&#039;t).And if you&#039;re in the camp that thinks this will all crash once stimulus is withdrawn, ask yourself why that is?Consider this: the US feds funds rate peaked at 2.5%. they began tightening monetary policy in 2016, 8 years post GFC, but tightening nonetheless. Then what happened? Markets reached all time highs in 2019.Crises come and go. We live in a society where inflation is critical to production. So long as central banks are mandated to aim for maximal employment and 2-3% inflation, the markets will be ok in the long run.</blockquote>

[QUOTE="waterbottle, post: 1077477, member: 56541"] Indeed. The biggest take home lesson for me during the GFC was that governments will stop at nothing to keep asset prices inflated. The alternative is literally economic, social and political turmoil. The sooner i accepted that, the easier it was too understand why markets behaved the way they did. Coronavirus was an uncontrollable factor. It wasn't a man-made phenomenon (or at least the consequences weren't). And if you're in the camp that thinks this will all crash once stimulus is withdrawn, ask yourself why that is? Consider this: the US feds funds rate peaked at 2.5%. they began tightening monetary policy in 2016, 8 years post GFC, but tightening nonetheless. Then what happened? Markets reached all time highs in 2019. Crises come and go. We live in a society where inflation is critical to production. So long as central banks are mandated to aim for maximal employment and 2-3% inflation, the markets will be ok in the long run. [/QUOTE]

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