Charles never tires of reminding us that “reading the financial press is bad for your financial health.” Underpinning his belief isn’t just the old adage that “if it’s in the press, it’s in the price,” but also the reality that financial journalists are quick to declare any rising market, a “bubble.”

After a cataclysmic hiccup in March, markets rebounded with a vengeance in the second quarter of 2020. In fact, the Dow closed out its best quarter since 1987 on Tuesday, while the S&P and Nasdaq had their best quarters since the late-1990s.

This week, we are presenting an article from Evergreen Gavekal’s partner, Louis-Vincent Gave, on what’s in store for markets as the world reopens.

At the beginning of the year, it seemed almost unfathomable to those in the West that the world would change as drastically as it did at the end of the first quarter.

At the end of last week, David Hay outlined his case that the Fed should – and would – buy enormous amounts of corporate bonds and that the US Treasury might resurrect TARP (also known as the Troubled Asset Relief Program) to stabilize the economy. Evidently Fed-head Jerome Powell is a close follower of Evergreen’s newsletter!