Re:Nvidia is now worth more than Intel
by MobileVet on Thursday July 09, 2020 @10:59AM
(#23780999)
I have been spending quite a bit of time trying to understand how the market is doing so well. There are quite a few variables, as in most complex systems, and many have been outlined Robinhood etc here.
However, I believe the single biggest factor to the market's continued stability was the announcement by the Federal Reserve to buy corporate bonds. This has NEVER been done before and was a HUGE deal.
The announcement came on March 23rd. 'Oddly' that also happens to be the very bottom of the March sell off panic.
Those purchases just started happening. As such, I expect the markets to continue as if there is no Covid Crisis as it is viewed as a short term issue that has been mitigated at a corporate cash flow point by this Federal Reserve buying.
https://www.marketplace.org/2020/06/16/the-fed-starts-buying...
However, I believe the single biggest factor to the market's continued stability was the announcement by the Federal Reserve to buy corporate bonds. This has NEVER been done before and was a HUGE deal.
The announcement came on March 23rd. 'Oddly' that also happens to be the very bottom of the March sell off panic.
https://www.nytimes.com/2020/03/23/business/economy/coronavi...
Those purchases just started happening. As such, I expect the markets to continue as if there is no Covid Crisis as it is viewed as a short term issue that has been mitigated at a corporate cash flow point by this Federal Reserve buying. https://www.marketplace.org/2020/06/16/the-fed-starts-buying...