The DAX has definitely popped! Some say that the Federal Reserve and the ECB will un-pop what has been popped. I have serious doubts about that!
When I was a child I tried sticking back my bust balloon with sellotape and blowing it up again! It didn't work. I think the FED and ECB will be taught the same lesson. They may blow some hot air of cheap money back into the balloon but I can't see this re-inflating to health any time soon. I apologise to the bulls.
Very good example :) Making money is easier today. No need to go down to the cellar and physically print out paper money. All you have to do is turn on a computer in the FED office and type in a few zeros. Windows 10 can handle everything.
Investor fear the unknown - once the virus outbreak stabilizes, we'll see a recovery. Stocks are selling at a spring/summer discount now.
Captain_Walker
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@MujkanovicFX, No one I know, knows when the virus outbreak will stabilize. The other issue is solving the supply-demand shock issue.
Even if 'the virus' stabilizes (whatever that means), how will supply-demand shock be resolved. If anyone knows with sound references and reasoning, do educate the rest of us.