Signage outside the Nasdaq MarketSite in Times Square in New York on July 20. Contrary to some popular arguments, recent surges in stocks have been rational reactions to the extraordinary measures taken by governments and central banks in response to the Covid-19 pandemic. Photo: Bloomberg Signage outside the Nasdaq MarketSite in Times Square in New York on July 20. Contrary to some popular arguments, recent surges in stocks have been rational reactions to the extraordinary measures taken by governments and central banks in response to the Covid-19 pandemic. Photo: Bloomberg
Signage outside the Nasdaq MarketSite in Times Square in New York on July 20. Contrary to some popular arguments, recent surges in stocks have been rational reactions to the extraordinary measures taken by governments and central banks in response to the Covid-19 pandemic. Photo: Bloomberg
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

Coronavirus recovery: why the market rally makes perfect sense – but is likely to end in tears

  • Arguments that the rally in stocks is unjustified and built on weak foundations do not hold water, given the extraordinary measures taken around the world
  • The biggest risk is not that investors are complacent or irrational but, rather, the wave of global liquidity that is driving asset prices

Signage outside the Nasdaq MarketSite in Times Square in New York on July 20. Contrary to some popular arguments, recent surges in stocks have been rational reactions to the extraordinary measures taken by governments and central banks in response to the Covid-19 pandemic. Photo: Bloomberg Signage outside the Nasdaq MarketSite in Times Square in New York on July 20. Contrary to some popular arguments, recent surges in stocks have been rational reactions to the extraordinary measures taken by governments and central banks in response to the Covid-19 pandemic. Photo: Bloomberg
Signage outside the Nasdaq MarketSite in Times Square in New York on July 20. Contrary to some popular arguments, recent surges in stocks have been rational reactions to the extraordinary measures taken by governments and central banks in response to the Covid-19 pandemic. Photo: Bloomberg
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Nicholas Spiro

Nicholas Spiro

Nicholas Spiro is a partner at Lauressa Advisory, a specialist London-based real estate and macroeconomic advisory firm. He is an expert on advanced and emerging economies and a regular commentator on financial and macro-political developments.