Unemployment stands at 10.2 percent as thousands of businesses remain closed. Many of the jobs shed when businesses closed their doors for extended lockdowns have not come back, and the jobless rate remains at its highest level since the Great Depression.
Gene Goldman, chief investment officer at Cetera, says that equity markets are enjoying a V-shaped recovery even as the real economy is experiencing a slower, U-shaped recovery.
“It does not make sense,” he said.
The Fed dropped interest rates to near zero and opened a slew of new lending facilities to keep financial markets afloat. Its balance sheet exploded from roughly $4.3 trillion in mid-March to about $7 trillion today.