Equities are the new toilet paper

Equity markets appear to have long been disconnected from the dire economic reality caused by the pandemic; with stocks near all-time highs, while the economy is still running significantly below its potential capacity. One of the reasons for this divergence has been the unprecedented fiscal and monetary support, which has made it possible to avoid … Continued

The clash of the curves

After yesterday US congressional leaders agreed on a relief package for the US economy of historic proportions, another critical milestone has been passed. The fiscal and monetary firewalls that have been erected should be sufficient to allow the economy to hail from a sudden slowdown in activity. However, there is still a fundamental unknown to … Continued