Record Liquidity vs Depression-Level Economic Activity
With over 30 million American jobs lost since the outbreak of the Coronavirus pandemic, the U.S. economy is reeling from an unprecedented economic shock - even surpassing that of the Great Depression.
And yet, despite depression-level economic activity, U.S. equity indices like the Invesco Nasdaq-100 ETF (QQQ) have now rallied into positive territory on the year. Why? Look no further than the unprecedented $6 trillion (and counting) of combined monetary and fiscal stimulus. As the great Stanley Druckenmiller once explained:
Earnings don't move the overall market; it's