The goat is gone

The buoyancy and the optimism of the equity markets are now looking like a serious anomaly at the heart of the economic and business impact of the Covid lockdowns. Why are the markets so excited? Maybe because the goat is no longer in the room. Let me explain what happens when the goat is no longer in the room. In a certain village, there is a very large and poor family who are living in a cramped room. One day, the head of the family goes to a wise old grandmother of the village and asks for some advice. "There are 12 of us in this tiny room," he says. "It's so dirty and cramped, everyone is always fighting, the children are crying, and there is no place for anyone to even lie down. What should I do?" The wise old woman says, "Keep your goat also in the room." The man says, "Are yo