In the absence of somewhere else to invest money it does make sense that stocks would go up in a zero interest rate environment tbh. Would you not agree?
How does it make sense? Sense is found in protecting your capital. Would you put your precious pile of dosh in front of a flamethrower that is about to be ignited?
Because that is what they are doing.
Earnings season will be Brutal.
The issue here is 'moral hazard': they essentially are prepared to have that money incinerated because they just expect the Fed to print them up a fresh batch.
But that is not going to stop equities going down when earnings start to get announced and the realisation hits home that this will not be a V shaped recovery.
Markets were making record highs in January, not even registering the coronavirus as any
sort of threat. That shows they have an appalling inability to see danger when it's right up in their faces.
