Reuters
The Federal Reserve’s monetary relief flooded markets with liquidity, but prices now rest on shaky foundations, according to the billionaire investor George Soros.
Stocks’ lofty valuations are underpinned by hopes for another round of fiscal stimulus and the expectation that President Donald Trump will announce a reliable coronavirus vaccine before the presidential election, Soros said in an interview with the Italian newspaper La Repubblica published on Tuesday. The next spending bill would need to eclipse the $2.2 trillion Cares Act to meet investors’ expectations, he added.
Concerns about the Fed’s actions forming a market bubble “hit the mark,” Soros said, adding that the central bank had been “more successful” than Trump in buttressing markets…...more here
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