If my info is correct, we have two back to back months in which foreign investment in americian bonds and such securities went negative for the two months
Then add the Fed/Treasury which seems to want to back stop the market from any dramatic down turn
Then the strong possibility that we will have basic income. The CARES act is likely to be expanded into a basic income for those millions of unemployed. Yes we saw the numbers of unemployed decline but until we reach full or almost pre corona numbers the atmosphere in the house especially is to pay a basic living wage.
Then we have the problem of banks looking at multiple defaults from home owners and commercial RE which looks like a bank bail out by the Fed is going to happen
Now this is all conjecture but I think I see a trend developing, where large sectors of the economy get Fed relief in one way or another
Is it any wonder foreign investors are pulling money out of the USA investment market
Where will that money go??
Some think gold and silver may be the safe haven
I forgot to add this almost guarantees Fed assistance in upholding a strong stk market value, or a loss of confidence could happen, with foreign investment. Bond sales have been a bit weaker by foreign investment sources [again if my info is correct] forcing the Fed to finance the deficit.
I suppose we will soon test the theory if deficits really matter