The smart $ in the markets are always looking forward into the future not at what's happening now so IMO they're expecting a post-Covid burst to the economy not unlike what happened after WW2. I tend to agree. There will be bankruptcies continuing but, again, IMO there's a huge pent-up demand just waiting to go crazy on trips, eating out, & other leisure activities that people have had to do without.
Yeah, some have lost their jobs but the Gov't handouts have helped those and many more that don't actually need it. How else can you explain house prices rising and car sales having a much better than expected result than the OE's figured (although most of that I suspect is from people shying away from public transit).
However, if there are any chinks in the vaccine armour (severe side-effects, people dying, etc.), that's when I expect a big drop will happen.
Is there stupid $ in the market? Absolutely and the smart $ counts on it. The trick is to think like the smart $ but the crystal ball is definitely hazy.