Maybe I am being too cynical, but given the close links between the Liberal party and the corporate world I can't help but suspect that many of the stimulus measures announced by the government in response to the pandemic situation have been formulated to boost the stockmarket. For example, the government decision to allow the early withdrawal of superannuation tax-free looks to me like a ploy to shift funds from the super funds into stocks directly. Certainly, based on what I am hearing, it seems to me that many of the people looking to withdraw their super next week are doing so with an eye to redeploying their money into the stockmarket. Considering the wave of money from superannuation and Jobkeeper payments that is set to flow into the Australian economy over the next three weeks, in addition to the RBA's quantitative easing and the record low interest rates, I tend to agree with the arguments presented in this wire. All things considered, you would have to assume that there is a strong chance of a significant stockmarket rally in the weeks ahead.
Patrick - whether it's 'being too cynical' or challenging the motives, it's all good debate and sharing of ideas. Suffice to say, people can't eat their superannuation statements. Emanuel - Good post and good podcast. I agree with 2 of our 3 'stock picks' on the AI Rask podcast :)
Thank you Patrick and Michael for sharing your views