COVID-19 and the Stock Market: Long-Term Assessments | VOX, CEPR political portal – voxeu.org
The rapid rebound in US stock prices following the Covid-19 shock has revived discussions on the “foam” on the stock markets. This column examines how asset prices are affected by drastic shocks to the real economy and what factors are behind this relationship. The survey results suggest that, from a longer-term perspective, high asset valuations may reflect more than investor optimism. The…