Stock research: Another crash and how to make sense of it?

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Facts to highlights:

1. The S&P 500 has skyrocketed 40% since March 23
2. Market valuations to dotcom-bubble levels
3. the option of buying stocks on the part of the Fed is on the table
4. the strong link between stock prices and corporate credit spreads
5. In August 2007, he said the credit squeeze at the time could morph into a recession. Stocks hit record highs that fall, before beginning an historic collapse as the Great Recession began
6. Aggressive purchases of Treasuries and mortgage bonds have caused the Fed's balance sheet to swell to $7.2 trillion, up from $4.2 trillion at the end of 2019. Its balance sheet is now eight times larger than before the Great Recession.
7.  Struggling businesses such as Carnival (CCL) and Ford (F) that were essentially locked out of the credit markets in March were suddenly able to borrow again.
8. Technically, the Fed does not have the legal authority to purchase stocks
9. the US central bank should seek that power.
10. the Fed's corporate bond purchases are distorting the capitalist system
11. the Federal Reserve is going to sit there and continue to fund these zombie companies that don't deserve to exist,

Arguments:

1. S&P 500 will retest its March 23 low of 2,237.40 over the next month, potentially crumbling to as low as 1,600. 
2. That would mark a 49% collapse from where the index traded Tuesday during a strong rally.
3. the Fed could suffer losses when markets tumble, as they sometimes do. For instance, the Swiss National Bank recorded a loss of 31.9 billion Swiss francs ($33.5 billion) on stocks during the turbulent first quarter

The Federal Reserve is buying junk bonds and corporate debt ETFs as part of its campaign to revive the American economy. Next on its shopping list: US stocks, as Scott Minerd, global chief investment officer at Guggenheim Partners, told CNN Business.

The S&P 500 has skyrocketed 40% since March 23, when the Fed announced its unprecedented experiment with junk bonds. That surge, coming in the face of the collapse of the real economy, drove up market valuations to dotcom-bubble levels.