Two months ago, many investors predicted that unemployment would remain high for a long time, presumably because that’s how a typical recession works. There’s been a fair amount of evidence since then that employment is able to recover from this atypical downturn much faster than those investors expected.
That’s not the whole story, but I’d guess it accounts for at least 1⁄3 of the SPY rise over the past 2 months.
Two months ago, many investors predicted that unemployment would remain high for a long time, presumably because that’s how a typical recession works. There’s been a fair amount of evidence since then that employment is able to recover from this atypical downturn much faster than those investors expected.
That’s not the whole story, but I’d guess it accounts for at least 1⁄3 of the SPY rise over the past 2 months.