The recent resurrection and upsurge in the stock markets has come after some steep falls during the pandemic. Though an upward surge is welcoming to many, most stock markets globally have risen to new heights – raising concerns about a stock market bubble.
COVID economic relief stimulus checks
The US government had passed a bill to offer stimulus checks as a measure to uplift people impacted by the COVID pandemic. While the first stimulus checks worth of $1,200 each were issued in April 2020, the second round worth $ 600 each were sanctioned in late December. These COVID-19 relief measures also increased the purchasing power of the citizens, thereby, also increasing the liquidity in turn, increasing the global liquidity.
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