[Mick]

I can only see one explanation for the stock market doing as well as it is doing -- investors expect large corporations to consolidate power in their various markets as middle market and small businesses are forced to close. In the short and medium term earnings will be depressed, but longer term there will be more concentrated power at the top. Well, that or investors are largely clueless about the severity of the situation.

It's a great time for investors.  This economy will be particularly harsh upon companies with very unique, very competitive technologies -- and little cash flow, sometimes with big cash drain.  There are a fair number of private equity bargains.  There will be consolidation all up and down verticals.  Very large companies will acquire smaller companies for their talent and technologies, but so will smaller companies that want to execute a roll-up.  

Not-so-secret secret is that large companies for the past few decades have been spending less and less on original R&D, rather, they acquire companies that appear to have the better developed, more saleable technologies.  They've outsourced their R&D, so to speak, by acquiring companies with technologies complementary to their own.  Markets like these make those acquisition targets cheaper for the acquirer which makes those larger companies more attractive, and safer investments to buyers.

[Mick]

I can only see one explanation for the stock market doing as well as it is doing -- investors expect large corporations to consolidate power in their various markets as middle market and small businesses are forced to close. In the short and medium term earnings will be depressed, but longer term there will be more concentrated power at the top. Well, that or investors are largely clueless about the severity of the situation.

It's a great time for investors.  This economy will be particularly harsh upon companies with very unique, very competitive technologies -- and little cash flow, sometimes with big cash drain.  There are a fair number of private equity bargains.  There will be consolidation all up and down verticals.  Very large companies will acquire smaller companies for their talent and technologies, but so will smaller companies that want to execute a roll-up.  

Not-so-secret secret is that large companies for the past few decades have been spending less and less on original R&D, rather, they acquire companies that appear to have the better developed, more saleable technologies.  They've outsourced their R&D, so to speak, by acquiring companies with technologies complementary to their own.  Markets like these make those acquisition targets cheaper for the acquirer which makes those larger companies more attractive, and safer investments to buyers.