This article confirms what I’m hearing anecdotally – people have been saving money during the Pandemic, with options for spending constrained. Meanwhile, our marvelous and ingenius people have found ways to work around Covid’s face-to-face constrictions and continue working and earning. Result: likely continued low interest rates and likely bull market continuing ahead.
Bloomberg.com, By Tim Duy December 1, 2020: “Get ready for a supercharged economy”
The U.S. stock market had one of its best months ever in November, with the S&P 500 Index surging almost 11%. Many are again questioning whether equities have become disconnected to reality as the Covid-19 pandemic rages anew. Lost in the debate is the potential for an explosive economy in 2021 given the magnitude of excess savings that households have accumulated, a sum that probably totals about $1.4 trillion.