Pandemic-related stimulus has created a financial bubble

CRISIS, WHAT CRISIS?

The markets seemed to think there was no such thing as bad news during the past 12 months. The US S&P500 index finished 2020 at record levels despite raging Covid-19 and political ructions. The key index fell by around 34% before it bottomed in March, but by the end of the year it had rebounded an incredible 70%. By mid-January it was still up 11% on pre-Covid levels.

In Australia, the bounce has been more muted. In mid-January the S&P/ASX 200