The domino’s are starting to fall–one by one. I believe the retail sales numbers, which were disastrous, are trumpeting the hell to come. The printing presses are way too small to overcome the decimation.
Today Best Buy (BBY) finally furloughed 51,000 workers–although most were part timers, there are full time positions being furloughed as well as ‘voluntary’ furloughs. You can be certain that involuntary furloughs will be next–within 2 weeks if stores don’t begin to open. The CEO of Best Buy stated that in April sales are down 30%–can’t run full staffs on very skinny margins with this kind of downdraft. I watch BBY closely because of family members working at their headquarters.
In Minnesota business owners are getting very antsy–the governor says he is sympathetic-kind of empty coming from a state employee (although he took a 10% paycut). Listening to the governors daily news conference yesterday it appears there could be a ‘revolt’ anytime–it will soon be the time to take a chance and begin to open some businesses–the economic disaster will soon outweigh health concerns.
I’m kind of watching it all play out today–no real motivation to buy or sell much, although I did buy 100 shares of the Spire 5.90% (SR-A) perpetual preferred to add to my currently holdings–bought at $25.50–I see it is at $26.20 now–this is a “Gridbird” special–he is in and out of this one often–I suspect he bought a pile today down in the $25.50 area–probably looking to sell it now for 60-70 cents of quick gains.
My perfect scenario is that we see equities drift lower–maybe 500 points a week for the next 8 weeks. I hate to see huge multi thousand point days–but prices have to go down–get real.
Plenty of bargains will be had as one by one the domino’s fall–I want to be there at the bottom.