Last edited Fri Jun 5, 2020, 08:19 PM - Edit history (3)
investor, since they sold below today's closing value. (Doesn't include round trips where someone who in the past sold at 2000 and bought back at 1500 or something like that. Or even more recently sold at 3000 and bought back at 2300).
So far. The unwinding of the stimulus and Federal Reserve corporate lending has not yet begun. Nor have many corporate or municipal bankruptcies or small business failures occurred, yet. Hopefully investors will keep on buying at P/E's that are way higher than the already very high values that we had pre-pandemic, especially after Q2 earnings are announced and P/E ratios refigured.
And given that the market has priced in a near-perfect reopening and recovery, there is a lot of risk of a reversal, to put it mildly, if a second pandemic wave forces a wave of re-intesified restrictions and closings. In the meantime, strict capacity limits will crimp business revenues in places that rely on heavy foot traffic. Or people being in close proximity like planes, busses, cruises, Uber, ...
We will also be enduring vast cutbacks in state and local spending.
Minnesota's $1.5 billion budget surplus turned into a $2.4 billion deficit almost overnight. The $2.4 billion deficit will soon be seen as the good ol' days.
Coronavirus cases are climbing again in the South and the West. Will crowded protests spark bigger outbreaks?, Yahoo News, 6/5/20
https://news.yahoo.com/coronavirus-cases-are-climbing-again-in-the-south-and-the-west-will-crowded-protests-spark-bigger-outbreaks-125403100.html
The Reuters coronavirus database, which measures and compares the total number of new cases each week:
https://graphics.reuters.com/HEALTH-CORONAVIRUS/USA-TRENDS/dgkvlgkrkpb/index.html
and the protest crowding hasn't even begun to show up in the above.
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