The Comeback Continues
Today I was on Yahoo Finance The First Trade discussing the latest in the economy and markets. Right now I would be a buyer on any Coronavirus weakness - the goal of prior shutdown was to protect health care system and it was never close to being over run. While cases are rising, daily deaths are steadily declining. We have seen the worst of this.
Here were my thoughts going on this morning -
Economy is coming back quicker than the rosiest of expectations
While weekly jobless claims have been high – continuing claims have continued to decrease
Largest Monthly Retail Sales Ever
After Largest Monthly wage gain ever
Leading Economic Indicators up 2.8% Today
Some High Frequency Data
Box Office Receipts Up 148% WoW, 335% MoM
Hotel Occupancy up 2.7% WoW, 9.2% MoM
TSA 7 Day Moving Average up 25% WoW, 131% MoM
The Treasury & The Fed have fundamentally changed the risk of stocks
If the Fed can provide unlimited liquidity for SP500 companies bankruptcy risk has essentially been eliminated
With Rates going to zero, the country reopening and the economy rapidly improving stocks should make new highs this year
2nd Wave not real – result of more testing, more asymptomatic people being tested, death rates are declining
If you can protest & riot we can play football, go to School, Restaurants, etc. – 15 days to slow the spread is not 96 days of sheltering in place.