The instability of the equity market reveals the presence of two opposing forces

Since the start of 2021, the equity market has been very unstable , with significant declines that are holding back its rise. This instability may result from two opposing forces being in conflict: The bad news: fourth wave of COVID, and risk of a decline in growth, rising commodity prices and risk of inflation; Monetary policies, which keep investable liquidity growing and interest rates very low. The equilibrium between these two opposing forces can lead to major volatility in share prices and also a seemingly surprising fall in long-term interest rates.