The stimulus package congress ultimately passed represents 10% of GDP. And so far, investors can't seem to plow back in fast enough.
It also helps that Fed Chair Powell turned the monetary spigot to the proverbial 11. Promising to hoover Treasuries, MBS and even high quality corporate bonds, Powell gave the markets much needed liquidity reassurance.
Yet, investors in their "yippee" may be more than a tad insouciant.
What of peak corona and what of jobs lost?
Heartbreakingly, it is unlikely we have seen the worst of the COVID-19 crisis in the US or globally.
Also heartbreaking, last week's unemployment data was by far the very worst ever. More than 3.2 million Americans filed for unemployment insurance -5x more than the previous worst (from 1982).
We are likely looking at a bumpy and painful path to a U-shaped recovery - probably not the V-shaped one we'd all like to root for.
