The Brains Trust - 2020, page-796

Is old sol starting to peak from behind the clouds? Rate of new cases in Oz is falling rapidly, see link below.

View text description and larger image of 'New and cumulative COVID-19 cases in Australia by notification date' graphic

(Oz Covid 19 death toll to date is 20, versus typically 161,000 dead from all causes in Oz every single year. A couple of hundred people in Oz would typically have died over the last two months from vehicle accidents alone, yet we still drive cars for pleasure as much as we like. We humans are stark barking mad.)

Some projections are for a blowout in Oz federal government debt over the next 18 months by as much as $400 billion, to more than $1 trillion, with the federal deficit to reach as much as $200 billion. Legislated tax cuts look to be secure. RBA has taken interest rates down to a record low 0.25%. Stimulus out the wazoo, here and everywhere. Globally the amount of stimulus is in the trillions.

The trickle back into equities could become a flood at some point given that the world is now awash in cash and liquidity and substantially overweight bonds. Dunno when though - could even be weeks away. Just don't underestimate the market's ability to discount future events, if the outcome trends happen to come rapidly into focus.

I'm not suggesting that anyone should chase rallies, dead-cat bounces, or fake-outs. I'm not a financial adviser, this isn't financial advice, do your own research.