Current Events

The COVID-19 Economy: Like Alice in Wonderland! A Warped Reality?

As an investor, do you feel like you have suddenly entered a surreal world where the markets should be going down, but instead they are going up, and for no logical economic reason?

It is somewhat strange and troublesome to see the U.S. stock market surging ahead and currencies like the Euro hitting its highest value ever ($1.60 CDN) even though millions of people in Canada, the USA, and Europe are unemployed and businesses are going bankrupt at a record rate! Household and government debt is rapidly increasing while the rate of savings is rapidly declining. In Vancouver, people are paying record prices for homes, even engaging in bidding wars; and in Toronto rental costs are going upwards. What is going on? The economic indicators are going against all logic. Is a huge reality check (crash) imminent? Are the markets being purposely manipulated? History does repeat itself: hopefully this is not a repeat of 1929!

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