“While on average we may face a bear market every 10 years, this one is like no other,”…
After recovering a chunk of the losses racked up during the worst of the coronavirus-induced selloff last month, the stock market finds itself at a crucial inflection point, writes Alan B. Lancz.
“The next 45 days may just become the most critical period in U.S. financial history,” he wrote in a newsletter published Wednesday. “While on average we may face a bear market every 10 years, this one is like no other,” he said.
The contrarian money manager, who is a disciple of famed investor Sir John Templeton, said that the timing and execution of the reawakening of the U.S. economy from its dormancy could be one of the biggest factors in determining how the market recovers from COVID-19, which has forced swaths of businesses to shut down to help stem the spread of the deadly contagion that has infected more than 2 million people and claimed 137,000 lives, according to data aggregated by Johns Hopkins University as of Wednesday evening.
Investors are repeating the mistake they made all through February and early March. They are again underestimating the immense economic shock of COVID-19.
And Avoid Another Bailout. The only problem, of course, is that banks will never do that.
Billionaire Paul Singer’s Elliott Management said global stocks could tumble more — ultimately losing half of their value from February’s high — as the world braces for the deepest recession since the 1930s-era Great Depression, according to a letter sent to clients on Wednesday and reviewed by Reuters.
U.S. small businesses may need as much as $500 billion a month to fully ensure their survival through the widespread closures and disruptions slamming their revenue during the coronavirus crisis, Atlanta Federal Reserve bank President Raphael Bostic said Thursday.
what could possibly go wrong? pic.twitter.com/4u4AeeB1SV
— StockCats (@StockCats) April 16, 2020
Morgan Stanley's wealthy clients?
Yeah, they're sticking with cash for now.
It's a reminder that just because every asset manager seems to be starting a opportunistic credit fund, not all individual investors are ready to load up on risk.t.co/ZEzFjmyfpU
— Brian Chappatta (@BChappatta) April 16, 2020
The Fed's Kashkari calls on big U.S. banks to suspend dividend payments & raise more equity. "The most patriotic thing they could do today would be to stop paying dividends and raise equity capital, to ensure that they can endure a deep economic downturn"
— Lisa Abramowicz (@lisaabramowicz1) April 16, 2020