It’s been a lousy month of March so far (Mar 12th as I write this) for the globe.
The human beings in this planet are under threat from an invisible-to-the-naked-eye enemy that is spreading at an alarming rate and targeting the elderly for the kill.
COVID-19, CoronaVirus, Exponential Growth, Social Distancing, Fatality Rate, Pandemic, Flatten the curve are some terms on everyone’s lips. There are real experts and there are others.
Companies have forced people to work from home. Large events have been cancelled. Travel plans are being rescheduled. Disneyland is shut down. A tiny microbe has the power to stop capitalism dead cold in its tracks. Many humans are suffering, though.
The stock market has been forced to react. It can’t deal with uncertainty and is throwing a fit. People are injecting liquidity, cutting payroll taxes as if the virus will listen. Even the market is not listening.
In the history of the world the word “testing” has not been uttered as many times as in the month of March. Some central body has the gumption to prevent conscientious soldiers on the front line from doing their job. Decentralization needs to work. Alas, bitcoin decided to throw a fit too.
There is realization that other countries in the world can do somethings better than good’ol USA.
Hoping this thing subsides in the next 2-3 months, so we can go back to our old ways again. That was tongue in cheek, but we can’t talk about the face now. My face is the loneliest part of my body now 🙂
The positive was that I got to spend half the week in Fort Collins Colorado.
COVID-19 meltdown continued.
Fed cutting 50 bps didn’t help. That is not going to speed up vaccine development or unblock supply chains.
To add fuel to the fire, OPEC and Russia failed to reach a deal to stabilize output. Saudi Arabia said over the weekend that it’s going to increase output despite lowered demand due to the pandemic. Oil is going to be routed.
Volatility was extreme. If one were a nimble trader, one could have played the yo yo game and made money both ways.
10 yr Treasury yields fell sharply
Gold continues to more valuable
These are challenging times for elderly retirees who face a double threat of the virus and stock market meltdown.
The downturn will persist until the flat part the viral growth curve is within sight or an anti viral is announced.