The fed launched a stock rally. How long will the optimism?

the Offensive of the bulls. Most exchanges have demonstrated a real rally.

In Russia the index of Masuri gained more than 7% and the RTS grew by almost 10%. The index of wide market S&P 500 soared more than 9%, and Dow Jones and is added to 11.3%. Trading on the Milan stock exchange ended in a rise in the core index by almost 9%, and this is the best result over the last 10 years.

the Reason for the change of sentiment was unprecedented injections of liquidity from the fed. Recall, the U.S. regulator on Monday announced the launch of unlimited asset purchase program. Only a week on the market are purchased assets of more than $ 600 billion.

Today, the optimism play Asian traders. The major indexes also add to the range of 10%. Futures on American indices are traded in small minus, which is quite logical after such rapid growth.

However, optimism may be temporary and short term. The situation in the world economy is not going to unfold. The authorities only reinforce the restriction of movement, and the business stopped.

Even in India, one of the largest and most densely populated countries, introduced a total quarantine and the streets are almost empty — this is even hard to imagine.

In such a situation, what was not was the infusion of the fed, may soon be in bankruptcy. First and foremost, of course, should expect problems in the most vulnerable industries, such as airlines.