So we can conclude that the market was over-reacting to the corona crisis.
I'd say the market was being perfectly rational at the time. Not only were equities riding a major bubble, but we're talking about literally the biggest GDP drops
ever, since we started keeping records anyway. In a free market, this would have been the crash to end all crashes.
That's one of the cruel things about both government interventions and markets in general: they punish the rational.
While I do agree with you in principle, it is actually perfectly rational to buy equities in this context. It's hard to swallow, but the reality is that the decoupling from equities, or financial markets in general, as also treasurues are nearing bubble valuations, and the real economy, namely the GDP, is perfectly coherent with the massive financial stimulus it has been poured on the economy dince 10 years ago, and has now accelerated during the pandemic: all this money printed by the FED has to go somewhere, and first, being real business not available for investmente, it had to go on the stock market, secondly, the equities themselves are a good hedge for the prospective inflation many foresee comeing, as a consequence of that vey financial stimulus, third, is a TINA (There Is No Alternative) porspect: given equities are rallying, and probably are going to rally even more, you don't want to miss such an opportunity to invest. This is particulary evident tfrom the fact S&P500 is now the S&P5+495...Are we in a bubble? Probably, can you afford to stay out of the market when NasdaQ is up 20% YtD? No.