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The detachment of the market and economy has begun, here’s why
By Loopholes Singapore  •  May 19, 2020
Could this be the end of any trace of rationalism in the market? Rightfully speaking, no one expects the US indices to climb back to 2900 levels in such a short time since the pandemic caused the market to crash. In fact, we are at best, at the peak of the first wave of COVID-19 infections in the world. Also, economic data of major economies are basically horrendous and in normal circumstances, it should have led to a major downturn. Instead, the US market reacted oddly and rallied in positive expectation of another substantial stimulus. These decisions by governments and reactions demonstrated the artificial resilience of the market which has brought many bearish investors to their knees. Though there will still be volatility in the horizon rather than a continued rally, STI seems to have found support formed during the last 2008 recession. After all, the stimulus...
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By Loopholes Singapore
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