here's some additional context to nuance your view. When...

here's some additional context to nuance your view.

1. When coronavirus hit in Wuhan, market didn't price it in
2. When it hit Italy, and the threat of it hitting US become real, markets priced it in, and people fled to cash
3. At this point, the government hadn't started with stimulus, and the Fed hadn't reacted to the impending liquidity crunch

So, the market tanks 5-6% overnight on fears of a second wave. Well guess what:

1. Economic outlook and sentiment still bearish - what's new?
2. Market and economy have not been correlated for as long as I can remember (let's go back 10 years, whats the annualised averge GDP in the States? 2.3% or thereabouts. What has the S&P done over the past 10 years? A lot more than 2.3%
3. The Fed's position is now clearly stated, and Powell and friends have put their money where there mouth is - they are no longer reacting to the second wave, they are already pumping. If anything the monthly asset purchase needs to steepen, not stay the same, that's probably the main risk
4. We see March lows only if a big bank falls. Always possible, but point 3 is trying to stop this from happening.
5. If liquidity is flowing to where it needs to get to, it stops big institutions from rushing to cash, because it is being served up to them on a platter. Question is, is it enough? The asset purchasing is the biggest (BY FAR!) in my lifetime.

If anything, we need inflation to pay back the enormous debt. We all know where this is likely headed and what this means for gold. Just need the velocity to pick up, and it will, someday. Add to it, the loss of confidence in fiat currency.

So, a long winded way of saying in my opinion, I don't think GOR is revisiting March lows, why, because government and Fed have not been caught offguard this time. The spending and the money pump into financial sector reserves is already happening at an alarmingly high rate. Question is, is it enough? Powell and friends have said they will throw the kitchen sink at it. Let's see.

I agree with you - economic fundamentals are not good. Financial engineering will do its thing until it's not enough. The news over night has nothing to do with the financial engineering. It's a news event, which creates a sell off because of economic fundamentals. Answer me this. If we agree that the economic and earnings fundamentals are so bad, should we even be above 3,000 SPX500? No. Then there must be an explanation for it, and let me tell you, it is not the robinhood retail investors driving this market, even though the media narrative suggests so, no chance.