The five best performing and worst performing stocks in the S&P 500 in the previous quarter pretty much tells the tale of the tape, so here goes.
'The Fed has just put the economy in an induced coma, attaching it on fiscal and monetary life support, hoping that when the time passes it can be brought back to life.'
Have stories about today's prices and not tomorrow's supply/demand possibilities set the stage for a rebound?
The excess inventory in oil will dry up, and the market will be forever changed. It is harsh in the short term, but could ultimately be beneficial.
We will enter a hyper inflationary world at some point. In that environment bonds and equities will move together in the same direction, and the 60-40 model will not work anymore.
Demand is collapsing from global lockdowns, just as supply is surging from all the major, battle-ready producers, who refuse to blink first amid the price war.
Dramatically slashing interest rates to zero and promising huge asset purchases are instilling fear, not confidence, in market participants.
Occidental's dividend cut should serve as a warning.
Coronavirus is the catalyst that rocked a very delicate boat, which came across an oil tornado's path. Commodities will be the biggest beneficiary of the turnaround, once it comes.
If we don't do this plan we will have a financial emergency as certain as we will have a health care one.