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Janet Yellen's Surprising Move
The liquidity equation refers to the balance between the money supply and the demand for money in an economy. Janet Yellen, the former Secretary of the U.S. Department of the Treasury, talked about refilling a government account in June or July. This might lead to a drop in bank reserves, which could cause some market weakness until July. It's not the usual situation.
Watch more of this short video from The Lag Effect WILL Punch This Market In The Face. But When?? | Sven Henrich.
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There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?
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