There are two sides of the US congress, the senate and the house. The house has passed a bill for a second round of US stimulus checks but the senate has not yet approved it. IMHO - The senate can not refuse to pass a second round of stimulus as the nation is in bad shape, but that is not to say that they will pass the stimulus bill in its present form. I suspect that there will be a second round stimulus with a modified bill.
I feel the house and senate of the US congress will sooner or later approve a second round of stimulus causing a false sense of confidence. The markets will rally, but it will be a temporary bubble. One that an investor can take advantage of.
Stepping back you have to look at the big picture. Even with a second round of stimulus this does not take the world out of recession. Looming is the news of the massive spending to quell the covid-19 epidemic, the cost of the first and possible second round of stimulus. The loss of GDP and the unemployment numbers due to covid-19.
I suspect the governments ( US, Canada and the world ) is delaying the bad news to not shock the economy into depression. Although I think there may be a second mini rally on the horizon. I will take advantage of this stimulus induced rally when it arrives, but with caution.
I feel the house and senate of the US congress will sooner or later approve a second round of stimulus causing a false sense of confidence. The markets will rally, but it will be a temporary bubble. One that an investor can take advantage of.
Stepping back you have to look at the big picture. Even with a second round of stimulus this does not take the world out of recession. Looming is the news of the massive spending to quell the covid-19 epidemic, the cost of the first and possible second round of stimulus. The loss of GDP and the unemployment numbers due to covid-19.
I suspect the governments ( US, Canada and the world ) is delaying the bad news to not shock the economy into depression. Although I think there may be a second mini rally on the horizon. I will take advantage of this stimulus induced rally when it arrives, but with caution.