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03.03.202108:42 Forex Analysis & Reviews: US stock market to collapse for sure, but first it amazes investors with new record highs. Market review on March 3, 2021

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S&P500

Certainly, the US equity market will not crash in the near future. Indeed, it is still keeping momentum in light of the newly-adopted stimulus package worth $1.9 trillion.

Interestingly, $1.9 trillion equals almost 10% of the US GDP.

Here are some figures for your consideration. The US economy has been logging zero growth without any financial aid from the government. The previous relief program injected cash that adds +10% to GDP. Under normal economic conditions, the US national output expands no higher than +3.5% on year. In other words, the fresh stimulus package is capable of generating economic growth of +3.5% for nearly three (!) years straight.

No wonder, the stock market is set to carry on with its advance.

However, a new record high will be followed by a deep correction.

So, let's wait and see!

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