I completely agree with LongTermBRK.

The government response to Covid and its impact on economy and stock market are similar in impact to changes brought about after the Great Depression - Social Security, Unemployment insurance, FDIC, etc.

This is a massive game changer. The incentives of almost everyone in a position of power and the broader populace is aligned with how the government responded during Covid. It is a template for responding to future economic problems.

This means there is more tail risks related to inflation (a huge negative to bonds, even TIPS) and a massive reduction in tail risks to stocks.

Market has correctly responded to this by valuing stocks higher.

Of course, people who are warned us about S&P 500 being massively overvalued when it was at 1200 in 2010-2011 or so continue to come up with reasons why we should keep worrying...

Berkshire Hathaway FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.