Aug 25, 2020
4 min read
Is There Price Discovery Any Longer?
The soaring stock market during an economic downturn is a bit troubling. The stock market is supposed to be a measure of economic activity, not divergence. However, the Federal Reserve has been stimulating the economy for over a decade now. The excuse has been hitting an arbitrary 2 percent inflation target.
To their credit, the Federal Reserve did try to clear the balance sheets in 2017 and 2018. As…
