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The S&P 500 And The Covid-19 Loop

Updated: Apr 22, 2021

In the past year, the constant liquidity injections from central banks to prevent the global economy from falling into a deflationary depression has generated a significant rise in risky assets, and especially equities and the mega-cap growth stocks. Figure 1 shows that the powerful impact that emergency QE purchases has had on the FANGs stocks; the index is already trading 70% higher than its pre-Covid19 February peak and was up 103% in 2020, raising investors concerns over the sustainability of the momentum in the equity market.

#SP500 #FANG

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