Powell again acts dovish, even when admitting tapering is coming possibly as soon as the end of 2021. He says interest rates are a different story than tapering, so the markets took that as ‘forever easy money’ and ran on Friday.
Goldman Sachs says biotech stocks have never been so beaten up compared to healthcare stocks. If easy money continues to come from the Fed expect small caps to get a footing and the medtech/biotech sectors to make up ground.
Evergrande, an ironically named Chinese real estate company, electric vehicle investments backfire, costing $700M in losses in H1 2021 and causing a $80 billion collapse in company valuation. Competitors circle like vultures to negotiate deals during a fire sale, as Evergrande is forced to sell hard assets. The Chinese government fights to keep this event contained. There maybe more cases out there like this, though.