The typical conditions for the birth of a bull market are here: you have a changed country, you have a deep fall in growth and everybody is perplexed by the rise of stocks.
If you have a company called x and today you feel the price is very high. Next year it could perform very well but the price may not perform. So in the stock market what happens is buy on the rumor, sell on the news.
My personal opinion is that when the economy does well, anybody who has a deposit franchise will survive and grow because how can you lend if you do not have a deposit franchise?
I think when markets go up and there is no manipulation in markets and people question the market going up and it keeps going up, that is a true bull market.
These dire predictions of COVID are behind us. Covid is getting milder and people are learning to treat it better. The percentage of deaths is coming down. We are learning to live with it.
