Almost every country has unveiled budgets to prop up their economies during this period. South Korea just unveiled their 3rd stimulus Budget that amounted to US$40B.
Even Australia which has never experienced any recession for almost 30 years (since early 1990s) will see a recession this year. This is the extent of how Covid-19 has hit world economies. Yet, we are seeing the stock markets rise in the face of all these – seemingly disconnected with the real world. This is probably driven by sentiments – the fact that global travel is starting again, countries are getting out of lockdown from the last 2 months, etc. But the re-start is gradual and slow. How can the growth be like what we are seeing in the stock market upward movement? All it will take is some bad news and there will likely be sell-offs once again….