The Covid-19 pandemic, which consumed every moment of our waking days and claimed over 1 million lives in the U.S. alone, had a most unique impact on the financial markets. One that, in my view, is here to stay.
It was not the pandemic itself, but the double whammy of easy monetary conditions and a spike in speculative stock market trading. That’s what may shape the rest of this decade. The liquidity genie just isn’t going back in the bottle any time soon.
