The financial markets we learned (last week) are made of paper-mache: durable, attractive hanging from the ceiling, but soggy when wet and totally destroyed when struck by a 10 yr old with a stick.
This week, in order to avoid tears, the parent (the Fed) assured everyone there’s enough candy for all (i.e., they won’t let markets go to zero), while holding the jar high (Congress) to pass out such candy just in case.
Currently the market is up 20% for the week. Shortest bear market in history.
Scolded were the Airlines, having recently repurchased millions of shares with billions of earnings, a mechanism to drive prices higher and their wallets fatter… soon to be broke WITHOUT Federal assistance.
We were also humored to learn making masks (deemed a medical device) is a lengthy approval process via the FDA.
The dark side of Covid is obvious. The bright side is a cleansing (hopefully) of all things (as tragedies are want to do) that will allow a more efficient and protected society. China will top that list, as well as dis-functioning financial markets and a more responsive government enterprise.
Not since WW II have we been asked to stop our daily deeds (for a couple three weeks) to focus on the enemy for the greater good. Then, everything was rationed. Today, toilet paper.
In the meantime, support your local small business where possible. I PayPal’d (family and friends) four haircuts to my hairdresser. She was very appreciative.