U.S. stocks have seen a significant rise despite the spread of the coronavirus, driven by strong purchases from individual investors, while interest rates have fallen to nearly zero for an extended period, amid efforts to revive the global economy.
Holger Zschäpitz, an economist, warned of a market crash again after the Berkshire indicator reached levels seen before the financial crisis. Zschäpitz tweeted that the indicator has exceeded the global GDP maximum by 120%, the same level it was at before the 2008 crash. In a second tweet, he noted that free commissions, free money, and increased leisure time have motivated individual investors to open an estimated 10 million accounts with brokerage firms in 2020. He suggested that this figure is likely a record, predicting that the federal funds rate will remain near zero until 2023, citing Trennert from SPR's comment that "the dazzling end may not have come yet."
