Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

I’m Not Tempted by This Rally

There is no reason to have stocks up today–or any day really, as we have no new news and the economic damage being done is way beyond anything priced into equity markets.

I am aware of the rumored oil production cuts in Saudi Arabia and Russia–and all I can say is that this is pure BS. Maybe they cut a little–but no way they are cutting 10-15 million barrels a day–to help the U.S.? Not a chance.

Finally I did start to hear a little realism out of a airline analyst today–air travel won’t recover for at least 18-24 months (he said). I agree–and furthermore there are bunches of industries and sectors that will experience waves of bankruptcies–no printing press is big enough to bail out everyone forever.

Beyond various sectors going BK the U.S. consumer is going to be hindered for a couple years. When a huge segment of the population has no cash reserves for hard times they are going to max out their credit cards, default on their mortgages, and return their new trucks to lenders in giant numbers–to think they will have any money available to restart the economy is pure fantasy.

Sorry for the negative vibes today–I keep looking for the good news—any good news—to think we may be at a buying time–but it evades me. I am just too damned logical. Maybe I should just go illogical and declare a ‘bottom’ to the strife–but I don’t want to join those in the soup line so it isn’t going to happen.

Oh well–I wait–wait for some good news–treatments, peaking in NY, a vaccine–I could be waiting awhile.

Leave a Reply

Your email address will not be published. Required fields are marked *