P/E x E in a Bear Market

(1) Fed Chair Buzz Lightyear: “QE4ever, to infinity and beyond!” (2) Pandemic of fear triggered by virus pandemic triggered a mad dash for cash. (3) Massive flows out of bond funds caused credit spreads to spike. (4) Fed had lots of practice playing Whac-a-Mole in the credit markets. (5) The buyer of last resort is now buying investment-grade corporate bonds and ETFs. (6) New record high of over $5 trillion for Fed’s balance sheet, with more record highs ahead. (7) Fed set to lend $4 trillion above and beyond QE4ever. (8) More like B-52 money than helicopter money. (9) The deficits of last resort. (10) Last week’s “bull market” is facing a major earnings abyss in coming weeks. (11) Using 2007-09 to benchmark 2019-21. (12) There is a path forward to ending the GVC.