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Yeah. And if it keeps going up, those of us that track to month-ending data only, there may never have been a bear! (Not my view, just saying.) The daily volatility this month (bond funds included) feels like five years! It is not something longer-term investors want to contend with ... and, if they don't, they better pick their long-term investments accordingly. And, while ETFs have their share of skeptics, they may be better at reflecting true NAV (including liquidity risk) than some OEFs. Today anyway. c
I agree with @davidmoran. Over the coming weeks and months companies will have to report earnings. No amount of cash infusions and making sure the markets function properly can substitute for what will be hugely disappointing earnings. Senator Burr sold hotel stocks. That's a canary in the coalmine to my way of thinking. The growth of our economy depends on people spending discretionary income at the places that are now mostly shuttered. I'm reducing DSENX by about 40%.
Totally agree. What @davidmoran described resembles the 2004 tsunami in Indonesia. Can't located the footage showed on CNN that go something like this: an earthquake occurred out in the Pacific Ocean and people were running into the exposed beach as the ocean pulled back. Then the outer waves grew taller and taller as they moved inland quickly and continued to surge. Boats, cars, and houses were tossed around like toys. The sound of people were indescribable.
Maybe Old_Joe may hold "virtual prayer services' for mutual fund investors, what a theme ..no hand shakes nor hugging nor kissing the CROSS/ Just 'donate' MFO fees to help management of MFO.
Per the tsunami reference, you could argue that the market is forward looking and earning drops and unemployment were priced into stock prices in the 1st tsunami wave of this. If some how encouraging news emerged that showed light at the end of the tunnel, a vaccine available with specific dates for instance, or an easy and available way to test for the virus, or a flattened curve on new cases, I could see the market drift higher for the same reason it dropped, future earnings looking more optimistic.
Now I don't readily believe that is going to happen, but it isn't unrealistic.
Comments
Interesting read -where stocks go from here
https://www.thestreet.com/investing/where-to-stocks-go-from-here-prior-correlations-provide-a-playbook?puc=yahoo&cm_ven=YAHOO&yptr=yahoo
Here is one video that showed the carnage resulting from the tsunami in Thailand.
https://bing.com/videos/search?q=tsunami+indonesia+youtube&&view=detail&mid=A3A63753C8C7FF817A0CA3A63753C8C7FF817A0C&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3Dtsunami%2Bindonesia%2Byoutube%26qs%3DMM%26form%3DQBVR%26sp%3D7%26pq%3Dtsunami%2Bindonesia%2B%26sk%3DHS1MM5%26sc%3D8-18%26cvid%3D1B1D0441DBF3432DB7A12BAE798AD205
The impact of this global virus crisis, termed by Ed Yardeni is far from over and likely to last for awhile before recovery.
Just imagine those people who went into the exposed beach as the ocean pulled back.
Now I don't readily believe that is going to happen, but it isn't unrealistic.