The global stock market has appeared to melt up dramatically on the hopes for a COVID-19 virus as well as a resurgence of consumer spending.
There may not be much of a recovery, which could mean that not missing out investors are falling into a classic market trap that has historically preceded a further meltdown.
Thanks to the Fed’s monetary policy support, the economy has been decoupled from the stock market.
The personal savings rate reached a record 33% in April, up from just 12.7% in March, the U.S. Bureau of Economic Analysis reported the same day.
The rate, which tracks how much people save as a percentage of their disposable income, is the highest since the department started tracking savings in the 1960s and nearly double the previous record of about 17∞, set in 1975, from the same source.
