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March 2020 is when the Fed cut the federal funds rate to 0-0.25%, i.e. the beginning of COVID-era ZIRP. https://www.federalreserve.gov/newsevents/pressreleases
by FreakLegion 2y ago
March 2020 is when the Fed cut the federal funds rate to 0-0.25%, i.e. the beginning of COVID-era ZIRP.
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315a.htm https://www.federalreserve.gov/newsevents/pressreleases/mone...
(This after already shaving 0.5% off at the beginning of the month, two weeks earlier.)
- dehrmann 2y agoRight, but did the price go up because money was free or bet on what the world would look like during and post covid?
- FreakLegion 2y agoBoth of course, plus quantitative easing and other factors. There was a lot of new money (QE) and not a lot of places to put it (ZIRP). In that context, companies like Chegg and Zoom were interesting bets and seemed to have more upside than, say, Netflix, which also had a strong couple years. But the whole market more than doubled in that time. The money had to go somewhere.