Asian markets have surged this morning, dragged higher by jumps in and a strong rally by WTI this morning. Sentiment has been further buoyed by from Alphabet (NASDAQ:) overnight, as well as the crossing the 20% threshold and entering an official bull market.
The latter does make me cringe, especially when the press is awash with similar headlines this morning. But then I have never liked running with the herd, especially ones full of bulls. Financial markets globally, continue to delusionly price in a semi-rapid move to normality in the world as economies tentatively return from COVID-19 lockdowns.
That is not going to happen in the slightest. A reality check should be the levels of government intervention and support in the global economy so far. That will all have to be paid back, but big government will be back in a very 70/80s manner for some time.
What is true, though, is that the world’s central banks seem to be prepared to back-stop the poorest of investment…