A JPMorgan Chase advisory letter, reported this morning by Zero Hedge, has the candor to report that the best post-election scenario for appreciation in the stock and bond markets would be a new national lockdown (of the sort mooted by Joe Biden). Unsaid by Morgan is that this would hit the economy again and hurt households and businesses; but it would be fine for financial businesses, because it would cause more QE by the Federal Reserve.
“Although it has had a negative impact in the short term, the reemergence of lockdowns and resultant growth weakness could bolster the above equity upside over the medium to longer term via inducing more QE and thus more liquidity creation.”
