Bailing out banks, autos, or airlines will not make them profitable nor change the recent earnings and margin trend.
A bailout does not boost a challenged business model, it just zombifies the economy. pic.twitter.com/KefPtyAhae
— Daniel Lacalle (@dlacalle_IA) May 25, 2020
DJ US Paper vs. S&P …. the Paper Index is a very early lead index and highly cyclical… so no hope for recovery… pic.twitter.com/ymoW1EiiXm
— HowlingWolves (@HaulingWolves) May 25, 2020
The supply of #money ‘created’ by central banks is massive, but it’s just not moving around! #velocityofmoney pic.twitter.com/pxiMkaRlPw
— jeroen blokland (@jsblokland) May 25, 2020
Stocks rally on pessimism pic.twitter.com/PlHCRcZcfJ
— Alessio Urban (@AlessioUrban) May 25, 2020
As the Fed is increasing the money supply while US GDP is contracting, velocity of money is slowing down very fast. Without money velocity there is no inflation possible… pic.twitter.com/2Ti9KQruKg
— Remi Tetot 🙈🙉🙊 (@TetotRemi) May 25, 2020
— Christopher Cole (@vol_christopher) May 25, 2020
A new wave of #volatility is on the horizon… https://t.co/I0sxCwlbbc pic.twitter.com/zfTPAYxf1u
— jeroen blokland (@jsblokland) May 25, 2020
How 2 out of every 5 jobs lost during COVID-19 may not come back https://t.co/tUA0MXk11C #economics #covid19 pic.twitter.com/ZMdPhN8NQN
— World Economic Forum (@wef) May 25, 2020
Big drop in employment, large drop in employment rate, huge drop in share at work and actual hours per week down by 11.6% (!) compared to last year. Much worse labour market outcomes than headline unemployment suggests. https://t.co/uELzQC3m3F pic.twitter.com/LhyHArD2G4
— Susanne Spector (@susanneek) May 25, 2020
Prepare For A Bear Market https://t.co/vRYAC53fOW @AlessioUrban @alberto95256855 @Tyler929394 @NorthmanTrader @carlquintanilla
— Capital Private Asset (@CapitalPrivate1) May 25, 2020
This article discusses evidence that a bear market is likely to persist.
It concludes that long-term investors are best off on the sidelines.
A model portfolio shows how purchasing power can be preserved for large amounts of capital.