Since markets are supposed to discover the price of excesses and scarcities, it's a mystery why everything that is in oversupply is still grossly overpriced as global demand slides off a cliff: oil, semiconductors, Uber rides, AirBNB listings and many other risk-on / global growth stories are still priced as if pre-Covid-19 demand was still guaranteed.

Punters are still buying semiconductor stocks based on out-of-touch projections that are the equivalent to counting the number of fairies on the head of a pin, ignoring the fundamental reality that very few people actually need a new mobile phone, vehicle, laptop, refrigerator, etc.

It boils down to confidence and certainty. People pursue what they desire but don't need when they're brimming with confidence in the future, bolstered by an animal-spirits euphoria that their income and wealth will continue rising--a sense of certainty anchored by a belief that their economic world is essentially without risk.

When confidence dissipates and is replaced by fear and uncertainty, desires lose their luster and needs take precedence. When you're afraid of getting a deadly virus or losing your livelihood, status symbols and frivolous spending no longer top the agenda.