So I'm watching gold going up like a rocket and the stock market chugging along higher.
Then it dawns on me. We (the USA) are horrible in our fight with the virus. (ya can't fix stupid) We are number 8 in the world in deaths per capita. From there.... it follows that the Fed has shown they will print as much money as the problem calls for. Hint, hint. A LOT!! A LOT MORE!!
I was reminded of the Iraq debacle. At first, when we were winning a quick war, the US$ rose sharply. Then, when things started dragging on, and we had to spend 1-2 trillion dollars, the US dollar plummeted.
So it might sound like no special incite, but I don't think the extent of our failure going forward is completely priced into our markets. They are getting priced in but not fully priced in. The dollar is falling sharply (Fed printing), which boosts an already strong gold market. The stock market continues to rally as it prices in more incompetence on the virus front. That sounds a bit counter intuitive perhaps. But stocks are not as strong as gold perhaps reflecting the conflicting tide of failed economic numbers (bearish) vs future Fed easing (bullish).