Barron’s Weekend Summary: The Federal Reserve is late in removing stimulus that, with the benefit of hindsight, was far too excessive, especially in conjunction with massive fiscal aid.Cover Story:The Federal Reserve is late in removing stimulus that, with the benefit of hindsight, was far too excessive, especially in conjunction with massive fiscal aid. The Fed’s largess might have staved off a worse recession and market correction in 2020, when the Covid pandemic first reached the U.S. in force and the economy effectively closed. But it has contributed to an inflationary mess that is getting more painful to address. The risks of a policy failure are big and growing, threatening job losses and market bloodshed to fight inflation, persistently higher prices to avoid recession, and, in a worst-case scenario, all of that at once.Interview:Barron’s recently talked with Gregory Davis, chief investment officer of Vanguard. He oversees $7.7T in assets and he’s most worried about inflation and US stock valuations. Davis is also part of a committee that meets quarterly to advise the Treasury Department on the strength of the economy and debt-management issues—about what to do with cash, why Treasury inflation-protected securities might not be the best inflation hedge, and why investors might want to look abroad. An edited version of our discussion follows.Tech Trader:The idea that food delivery service companies like DoorDash would be one of the lasting winners from the pandemic is a bit surprising—and the volatility in DoorDash stock suggests that skepticism remained high heading into earnings. DoorDash went public in December 2020, smack in the middle of the pandemic. The company’s IPO was priced at $102 a share, and it opened at $182, closing that first day at $189.51. But the stock got caught in the recent tech slump, plunging more than 60% from its November 2021 peak of $245, to a recent price around $96.The Trader:Gold has benefited from the tensions between Russia and Ukraine, as investors seek havens from the possibility of war. Even those who have taken less of a shine to the precious metal see potential upside ahead. “Risk-off tones, market fluctuations, and acute geopolitical risks are all occurring against an inflationary backdrop,” writes RBC strategist Christopher Louney. “While by year end we still think gold will be lower, in the near term we are not writing off the possibility of high prices and further volatility.”-Beware for other factors having a negative impact on the markets. It’s not only about the Federal Reserve interest rate moves and the Russia-Ukraine situation. It may be just a matter of time before the ground under the market gives way. For one, it hasn’t been able to rally on days when it looked like it should have. On Thursday, oil prices declined, as did bond yields and the odds of a half-point rate increase. That should have been good news. Instead, the Dow fell 1.8%, its worst one-day decline of the year.-Junk bonds often signal a recession—but not necessarily the way many investors think. A stock selloff is just a selloff, we’ve often been told, as long as high-yield bonds hold up. That helped during the first four weeks of January, when the S&P 500 fell 7% and the iShares iBoxx $ High Yield Corporate Bond exchange-traded fund (ticker: HYG) fell just 2.7%. But the S&P 500 has bounced 0.9% since then, and junk bonds have kept falling. As of Tuesday’s close, the S&P 500 was down 6.1% year to date, while the ETF was down 4.5%. That would seem to suggest economic worries are building.Features:-The Purpose Bitcoin ETF, which started trading on the Toronto Stock Exchange on Feb. 18, 2021, has proven popular. In only one month after its hit the market, it amassed assets for $1B, making it one of the fastest-growing ETFs at launch and showing how eager investors are for an easy and secure way to get exposure to Bitcoin. Today, the fund has about $1.5 billion in assets. But investors in the U.S. are still waiting—and many are pressing regulators to act.-At $24.86, Ethan Allen trades for 8.1 times its expected earnings over the next year, below that of competitors like La-Z-Boy (LZB), at 8.6 times, and Restoration Hardware parent RH (RH), at 15.9. And its dividend yield of 4.6% is more than triple that of the average small-cap. If its valuation grew to the low double-digits, where it regularly traded before the pandemic, Ethan Allen could trade above $30 and return over 25% to investors.European Trader:Nokia stock has jumped 73% to €4.85 since its October 2020 lows but with the turnaround only just entering the growth phase, analysts see the stock having plenty of upside potential. Those covering the stock have an average target price of €6.18, implying a 28% upside to Monday’s closing price. “We have created an excellent foundation as we begin to move into the next phase of our strategy to deliver growth and expand profitability,” Lundmark said as the company reported fourth-quarter earnings earlier this month.JP Morgan analysts, led by Sandeep Deshpande, shared those sentiments as they maintained a Buy rating on the stock. “We believe the company can now move to the next stage of taking share and growing more than the market,” the analysts said in a note.Emerging Markets:One result of the Ukraine crisis seems more predictable: The European Union will look to cut its dependence on Russian natural gas, which currently accounts for 40% of consumption. Companies from Norway to Texas might benefit. The simplest way to replace Russian flows, if you were sitting over a game of Risk on a rainy afternoon, would be US liquefied natural gas. America has more gas in the ground than it can use domestically. LNG output jumped 42% year on year in the first half of 2021.It could climb another 80% over the next five years, says Randy Giveans, head of energy maritime equity research at Jefferies. Top producer Cheniere Energy is earning $100 million on every shipload right now, Giveans estimates.-How much is Hong Kong’s strict zero-Covid policy hurting the city’s business environment, as cases rise in the financial hub? That question has taken on greater urgency as the Omicron variant has seeped into its strictly controlled borders and repeatedly hit record high case numbers for the city within weeks, at more than 4,000 Wednesday.Commodities:Oil has been hovering just under $100 a barrel for the past few weeks, as tensions escalate about Russia’s intentions in Ukraine. But Russia isn’t the only reason oil prices are high. One analyst outlined a scenario where prices could spike to $150, which would be a record. If oil rose to that level, it would undoubtedly cause more inflationary pressure throughout the economy at a time when the prices of all sorts of goods are jumping.Streetwise:-Jack Hough thinks the movie business is bouncing back from pandemic losses. A box-office analyst confirms my findings, saying North American theaters could bring in $8B, versus $4.5B last year and $11B in a normal prepandemic year. Meanwhile, Paramount Global (ticker: PARA), formerly ViacomCBS, topped expectations on streaming subscribers this past week, but the stock took such a brutal beating that it almost got its own CSI spinoff. “This combination of traditional assets and streaming assets is a real advantage,” CEO Bob Bakish tells me. “I realize that’s not in vogue, but that is the truth.”