Is the stock market finally doing what it should have been doing for a while and falling again to a level where there will be value? The last month or two it seemed to have been performing against any common sense. Why would things be going up when so many people where losing jobs, temporarily or otherwise? Is this the bubble, the dead cat bounce, that some have been expecting? NFI. Shares are still over valued I reckon.
Yes, markets ( always) behave less rational than we were made to believe in school. I see the same happening in commodity markets where the slightest hint of lockdown relief causes a swing in sentiment.
The fundamentals are what count and those are huge unemployment and an economy that is forecast to contract by 7.5% in 2020.
Not to mention the risk of a second wave of Corona.
The current backlash has been caused by the FED who have said they won't increase interest rates through 2022.