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05/15/20 – Tyler Durden: Fed Warns Stocks Face “Significant Declines” If Pandemic Worsens

Just moments after equities closed near the highs on Friday after yet another retail-driven rush into the stock market, the Federal Reserve poured cold water over all the bulls when the central bank unexpectedly issued a stark warning that stock and other asset prices could suffer “significant declines” should the coronavirus pandemic deepen – which we hope is not a shock to anyone – while highlighting that commercial real estate, which as we showed just yesterday just won’t stop collapsing, will be the hardest-hit industries. Read More.

Market Update Wednesday 05/06/20

US stocks zigged and zagged all day to a widely divergent close. The DJIA dropped 218 points (0.9%) but the NASDAQ outperformed once again, gaining 45 points (0.5%).

Stay tuned as the battle 0of the SkyNet StockBots continues.

05/13/20 – Tyler DUrden: Druckenmiller Turns Apocalyptic: “Risk-Reward For Equities Is As Bad As I’ve Seen It In My Career”

Investing legend Stan Druckenmiller unleashed a firehose of cold water on market bulls today during an interview with the Economic Club of NY (the same venue that will interview Jerome Powell tomorrow on the topic of negative interest rates), when he said the “The risk-reward for equity is maybe as bad as I’ve seen it in my career,” (although “the wild card here is the Fed can always step up their purchases”) , Read More.

05/13/20 – Jeff Deist: How Bad Is It?

How bad is it? That is the question on everyone’s mind as we come to grips with the economic carnage caused by global economic shutdowns, supply chain disruptions, and ongoing quarantines of million of people. Do we face another Great Depression, or simply a deep recession more like 2008? And equally important, are soft Americans prepared for either?Read More.

05/12/20 – Dorothy Hinchcliff: David Rosenberg Says the Bulls Are in Fantasyland

David Rosenberg bluntly told attendees Monday at John Mauldin’s Virtual Strategic Investment Conference 2020 that the stock rallies in recent weeks ignore reality and don’t recognize that the United States is likely entering a depression, facing double-digit unemployment for at least three years, secular changes in consumer spending and saving, and deflation followed by stagflation. Read More.

05/08/20 – Egon von Greyerz: Beware of the Bear – He is Soon Back

As the world economy is about to implode, very few investors realise what will hit them. The dip buyers of stocks don’t understand that it really is different this time as the world is now facing the biggest destruction of wealth in history. Stocks, bonds, and property are likely to decline by at least 95% in real terms in the next few years. With both sovereign and private defaults, many bonds will go to zero and interest rates to infinity. Read More.

05/07/20 – Michael Lebowitz: Investors Are Underestimating the Extraordinary Market Uncertainty

On April 29, 2020, Jerome Powell said: “both the depth and duration of the economic downturn are extraordinarily uncertain.”

We are often critical of Federal Reserve policy and contradictory economic jargon coming from Fed presidents and governors. However, to our amazement, Fed Chairman Jerome Powell surprised us with a moment of clarity. No truer words were ever spoken. Read More.