The RBA expects cheap money to remain. What does that mean for stocks?

Since the beginning of 2021, the S&P/ASX 200 Index has increased 160.7 points or 2.4%. Today, the index is up 1.06% on yesterday’s close. Part of the reason for the booming share market is the flow of cheap money, driven by the RBA.

The central bank has been looking for ways to steer the Australian economy away from another recession. Additionally, it is also aiming towards longer-term growth. In normal times, it would have a relatively light touch – leaving the proverbial ship on autopilot and all making small adjustments when necessary.

However, we’ve been in unchartered waters for over a year now – overwhelmed by the tidal…