Also, the government decides to print out more money too. Bank's interest rate also changed to lower compare to before in some countries. People put all their savings to gold or stock as they consider it was a safe channel to hide over this time. Definitely something in the recipe for disaster. My prediction is the real estate crash will trigger the start.
QE and low interest are always side by side and are usually used as a weapon to re-setup the economy because it is overvalued because the money is printed dozens of times compared to the existing underlying project. The way of resetting is for capitalists to discard overvalued paper by allowing the stock market to crash.
Because the losers are small investors, while large investors like Berkshire Hathway have left first and are holding cash.In general that's true, it's retail investors who have the most to lose and thus can't hold through corrections. They end up selling near the bottom and the big boys swallow up their liquidity.
Funny enough, this time Warren Buffett sold the bottom, at least in airline stocks. Berkshire Hathway liquidated everything in late April or the first week of May. I think they (as well as many other institutional investors) underestimated the buying power of retail investors, who have at least doubled their trading activity since before the pandemic began and are clearly affecting the market more than ever:
Retail traders make up nearly 25% of the stock market following COVID-driven volatility, Citadel Securities says