Calling a Spade a Spade

A lot of nonsense is floating around.

Over the weekend a Citibank economist said he could see nothing that could stop the Fed effect from pushing the market higher, like forever..

Well, I think there are two things to keep in mind.

1. First, the imminent demise of the manipulator in chief. All the talk on the betting markets pushing Trump numbers up over the weekend is interesting. Three groups will determine this election, minorities, women, and young people. I doubt either of these groups are voting on the betting markets.
2. Covid 19 cases are at a precarious state. Rising cases going forward, have the potential to bring economic activity to a standstill. We are seeing the first mass testing of Americans with the college year starting. I have three grandchildren at large midwest colleges. Early testing results are showing infection levels much higher than anticipated. Numbers are running between 10 and as high as 40 %, all higher than the 8 % level that is considered significant in raising the R level.