Why has the s&p500 already made a full recovery?

[jackg]

I hate it when governments tell companies "you didn't made a profit like you imagined you would?
Here is the money you would have made anyway" and just help them out. And the sick and horrible thing is, people, I mean literally humans, getting money because they need to survive from the government and companies (well CEO's) say that why should public get money individually when company doesn't?

They keep saying that if they do not, they would bankrupt, I am sorry but what type of company bankrupts after few months of not working? Have they never invested or saved a single cent in that company?

Are they spending more than they are making every single day? If you run a business that can't stop for 3 months, you deserve to be bankrupted, and if you think people and companies are equally important to save, you are a sicko as well.

Yeah the British government did something like if the main owner was a billionaire, the company had to turn to private investors to bail it out instead - which I think was a good idea. But they could even have reduced it a bit more. If you're not able to sell your companies bonds on the public market, you're probably not good at managing your company.

The US government aren't great at controlling their budget. Afaik they also gave lots of money in grants to some people (musk got $500k) and Google were founded fromggovernment grants. Now these should really have been loans, I'm not saying they shouldn't have been a thing, but they must've given them to tons of people.

If anyone doesn't have three months worth of expenses then they really should've been taken to court if they had a company as imo here that probably counts as fraud. A lot of companies that survive off continuously taking out loans do so but normally hold a years' worth of capital to pay off the debt if something happens.

[justdimin]

Money printing doesn't always ends with countries going down and becoming very bad, that is obviously one option but it is not the only option and if you are strong enough and your economy can handle it printing money is not really the worst thing.

Certainly if you are Zimbabwe printing money is not something you should do, it is very risky and it would result with already horrible economy to get even worse, however if you are USA or China or any other big nation that means you could print money without a trouble and you will still be fine. That is why I believe making a full recovery was more important than having any type of money printing issue. This doesn't mean dollar will not be less valuable, it will be less valuable but it is already too valuable so it won't be a problem.

[The Sceptical Chymist]

I'm still thinking the stock market is overvalued, but I just took a look at the YTD chart for the S&P 500, and it's just barely above the point it was at in February when the COVID-19 situation started to negatively affect the stock market.  So at the moment I write this, that index has indeed made a complete recovery--and I still don't understand why it happened.

Not sure what the status of the next round of stimulus money is for US citizens, but I'd imagine that if everybody got another check for $1200, we'd see even more asset inflation--stocks primarily, but probably bitcoin and metals as well. 

I didn't get a good vibe from the stock market this past week, though.  It seemed like there were more down days than up, though looking at the YTD chart it just looks like regular fluctuations, and I wouldn't bet there's a trend forming yet.  I've got my eyes peeled on pharmaceutical stocks, but I've been watching the market as a whole as well.  We'll see.  We're still in lunatic territory.

[exstasie]

I'm still thinking the stock market is overvalued, but I just took a look at the YTD chart for the S&P 500, and it's just barely above the point it was at in February when the COVID-19 situation started to negatively affect the stock market.  So at the moment I write this, that index has indeed made a complete recovery--and I still don't understand why it happened.

All the money printing throws into question what "overvalued" even means. The Fed bailed out corporate America by buying up the junk bond market. Their balance sheet has ballooned by $3-4 trillion recently. They would even have started buying stocks too if they had to. They scared the shit out of bears. Nobody was willing to sell anymore. No supply on the market, with lots of bears trapped below at March-July valuations = price was basically guaranteed to rise.

It wasn't about fundamentals at all. It was all about market liquidity. There was an incredible amount of cash in the market and very little supply.

[jaysabi]

... I am sorry but what type of company bankrupts after few months of not working? Have they never invested or saved a single cent in that company?

...

Most of them. It's only the largest corporations that can survive three months of no or severely reduced cash flow.  Same as most.  Majority of people live paycheck to paycheck. You cut off their income for three months, bills go unpaid; rent, mortgages, car payments. The consequences for individuals are slower. You're not immediately thrown out of your house, your car isn't immediately repossessed.  Business is different.  Vast majority of businesses are financed through debt, and the debt covenants give control of the business to the lenders when they miss debt payments.  The mechanisms are much faster and much more disruptive when businesses go under because they tend to ripple through the economy. A big company goes under, it loses a lot of jobs. Those lost incomes ripple through the economy. It's not as simple as you make it out to be.