Panic Is Subsiding… but What Will Be the Secondary Effects?
"The Fed managed to stop this massacre by announcing it would backstop everything."
"The Fed managed to stop this massacre by announcing it would backstop everything."
"On Thursday, the Mint said that it ran out of stock amid record purchases of the American Silver Eagle bullion coins, which rose from 650,000 ounces sold in February to 2.32 million ounces with just 12 days into March."
"Historically, since the gold standard was removed in 1971, gold’s price has had two major “bull market” fluctuations, from 1971 to 1980 and from 1999 to 2011."
Wall Street estimates are still in fantasyland.
On 9 March 2020, the Dow set a record by falling 2013 points. On 12 March, it beat this record with a 2352-point fall. Then, on Monday, it went into freefall, plummeting by 2997 points, or 12.93% on the day.
"The Coronavirus panic has therefore been a convenient excuse to extend the stimulus and liquidity provision by slashing rates towards zero."
"We are in a bear market and a recession. It just hasn’t been announced ... yet."
"At the Port of Los Angeles, 145 drivers have been laid off and others have been sent home without pay..."
"All major U.S. banking stocks fell by double-digit percentages during Monday’s session."
"The DJIA briefly slumped to 19.4% of February 2020 high as fears of the impact of the coronavirus pandemic grow."
"Predictably, U.S. stocks plunged on Thursday as the bad news came rolling in. By the end of the trading session, the Dow Jones Industrial Average was down 969 points…"
"...there mounting evidence it may not work."
"The stock market, however, is a strong leading indicator of investor expectations of growth over the next 12-months. Historically, stock market returns are typically favorable until about 6-months prior to the start of a recession."