People keep saying this, but what is the chain of logic for the fed getting into equities? They aren't in freefall. They've been rallying for the last two weeks.
Taken far enough, this program will leave the Fed without Treasuries to buy. To diversify the flow of assets onto the balance sheet, ever riskier assets will be purchased. Today it's junk bonds. Tomorrow it could be stocks.
It's rallying because all sorts of zombie businesses can now stay alive, thanks to the government lending them unlimited amounts of money.
All this does is it kicks the can down the road for a year.
If we're going to be back to normal in a year, and if stock prices were not overvalued a month ago, then prices now are too low, and it's a great time to buy.
If.
People are still dying. The government has to take action. /s