The environment allows equity markets to recover very rapidly after negative shocks

Many shocks have been causing equity markets to fall of late (public health shocks, fear of the effects of bottlenecks, fear of the effects of inflation, etc.). But we see that equity markets have recover ed rapidly after these shocks, thanks to an environment that is conducive to their rapid recovery: Companies are able to maintain or quickly restore high profitability; Highly negative real interest rates are a strong deterrent against holding risk-free assets (bonds, money); Economic agents hold excess liquidity that can be invested in equities. There is therefore a very strong restoring force that kicks in after equity market indices fall.