I think this pull back is long term for awhile yet, maybe not with the velocity we’ve seen, but the trend will stay down.
It took just 20 days to drop into bear vrs 200 days in 2008. However, back then the Fed had interest ammo to goose things back up and thus help promote liquidity. Now, the banks are in better shape but their customers borrowed like utter fools for the past many years. So, they will have more borrowing ability but no customers and a disrupted supply chain on top of carrying unheard of debt?
As a Canadian this is what really amazed me. The WH was quick to reaffirm Covid testing will be free, but treatments will still require co-pays. Unbelievable. What happens when the ‘free enterprise’ for profit health system is overrun with patients? Army field hospitals for the poor? In short, free testing for tests that have not yet been done and won’t be done for weeks, but any real treatment will still be paid for by patients (who may not have jobs and coverage)?
And, how is it that the Utah Jazz basketball team all received their Covid tests, but WA first responders have not yet been tested for the last 3 weeks?
No worries, next week is infrastructure week. I’m sure all congress will get together and create some WPA infrastructure work for those who will lose their jobs at Disneyland, ball parks, arenas, theaters, restaurants, airlines, schools etc….. and all those infrastructure work camps will be virus free.
How this doesn’t change the US economy forever defies my imagination. The powers can’t run “it” in good times, let alone in crisis.