The current atmosphere on financial markets is marked by growing uncertainty, even though stocks keep growing. According to Taleb, the problem is an intensified spread of coronavirus, which lowers hopes in V-shape global economic recovery.
“We print money as if there was no tomorrow,“ Taleb said in an interview for CNBC TV. He pointed out that the Federal Reserve System, which cut interest rates to zero, has proceeded to other unconventional measures of monetary policy – quantitative easing. As such, there’s no more space for further economic stimulation for the case of second wave of pandemic, and the US economy could be hit strongly.
And that is the hidden threat, which could come out of blue and hit stocks. Taleb says that those, who are not ready for any such events, should rather leave markets as soon as possible.
