Global earning estimates for the next 12 months show expectations have been cut sharply.
But are the expectations too optimistic still? Too pessimistic? Too many unknowns. #markets #stocks #earnings #corporates
Chart via J.P. Morgan & FactSet pic.twitter.com/AhZolMKwpL
— Andres Garcia-Amaya, CFA (@andrgarc) May 11, 2020
There are TWO #Amazing points about the chart below:
1) You are paying WAY too much for #stocks right now, and 2) If you owned anything other than FANNGM over the last 5-years you #underperformed the #SP500. pic.twitter.com/b832mVPtat
— Lance Roberts (@LanceRoberts) May 11, 2020
This Bond Market Signal Indicates the Bear Market Isn’t Over Yet
The price action of high-yield corporate bonds will signal to investors when the bear market triggered by the coronavirus pandemic is truly at its bottom, according to Longview Economics.
Treasury Secretary Warns of ‘Permanent Economic Damage’ if US Doesn’t Reopen
Treasury Secretary Steven Mnuchin said on May 10 that reopening the economy must be done in a strategic way, but he stressed that “permanent economic damage” might be done if lockdown measures aren’t lifted.
Central counterparties’ margining turns counterparty risk into #LiquidityRisk: large margin calls during the March turmoil strained dealer banks’ liquidity just when households & firms relied on banks for funding #BISBulletin #Clearing t.co/zdMtg3X3oC [Corrected graph] pic.twitter.com/ET2FS75Oxv
— Bank for International Settlements (@BIS_org) May 11, 2020