The key is to know what the Fed is thinking - how much volatility in the stock and repo markets are they willing to tolerate before pumping money in? How much inflation (assuming they use real inflation stats and not some bs hedonic modeling) before they are forced to raise rates regardless of the impact on asset prices? Are they going to bail out the insolvent zombie corporations? How much US debt will they monetize? Are they simply just waiting for the end of the US election to let interest rates normalize and stop bailing out hedge funds with toxic assets?Castillo said:“We never saw it coming” will be the response of the naysayers when the next crash happens, just as they did in 2008. The next crisis is a global debt crisis that is already here, but the Fed / BOE / ECB keep pumping money into the markets to male it look like everything is OK and it’s “business as usual”. Smart people however know this, and have taken precautions to protect their assets and businesses going forwards. Educate yourself rather than listening to bankers (I used to be one but got fed up of their bs)...
If you can answer these questions then it will be pretty clear what investment strategy to pursue - if you think the Fed will keep printing no matter what then go all out in gold and take on fixed debt to buy assets so that your net worth will rise with inflation and debt will be wiped out.
Or, if you think the Fed will eventually stop feeding the liquidity crunch in the near future (either post election or deep state inspired pre election crash or in response to inflation spike) then just sit back in cash and enjoy the crash, or even short the market.
Given that this whole boom is driven by Central Banks, it's somewhat pointless to try and predict the future without predicting what the Fed will do.
Unless this coronavirus is a true black swan that the printing press isn't able to rescue.