March 1, 2021, 3:04 pm EST
Thanks to the US government $1.9 trillion that Congress passed in the weekend and gave to senators. It is expected that senators will also agree with this stimulus plan. The strong rebound from the stock market about 2-3% gains from all major indexes and an across-the-board rally for all industries as shown.
Printing money and borrowing money works very well throughout the entire 2020-2021 COVID-19 period with about 70-100% gains for all indexes. The new government makes this process even faster. No doubt the bigger problem could come as asset bubbles become multi-year highs in terms of US debt, Case Shiller PE ratio, commodities prices, and US dollar plunge.
Most people eager for the $1400 check, unemployment payments, and low-interest-rate environment so they can spend their money in Las Vegas, cruises, or buying houses or bitcoins.
Before the bubble bursts, it is simply getting bigger.
Volatile stocks belong to China stocks (BILI, GUTU, QFIN, YY, PDD, DOYU, MOMO, SY, TME, BIDU, HUYA, JD, GSX), Marijuana (TLRY, ACB), and red-hot technology (ZM, TSLA). We do not want to touch these stocks due to high volatility and unstable markets. This man-made rally is not market-driven so traders and investors need to be aware of the risks.