Monday Morning Kickoff

Well I think we are through the medical panic phase of this selloff, BUT now to deal with the massive losses that will occur domestically and globally by pretty much all companies. Now we will have a giant equity loss on todays open as folks come to grips with ‘who remains solvent’?

Last week we had the S&P500 move in a range 2478 to 2882 before closing the week at 2711. Of course it took a giant gain Friday to get to the 2711 level–and we will give some (or all) of it back today.

The 10 year treasury traded in a wild range of .4% to .99% before closing the week at .95%. Normally I like to watch the treasury markets for signs of economic softness–but their usefulness now – for the short term, is fairly limited.

The Fed balance sheet grew by $70 billion last week–no surprise. Of course it is going to grow massively in the weeks just ahead–and in my opinion the years ahead. With the FED already announcing at least $700 billion in QE (quantitative easing) there is only one way to go and that is up.

Last week we had no new issues sold as far as I know–I have suspended my continuous monitoring of my SEC RSS feeds as markets have kept me quite busy.

Last week was one of the most devastating weeks in recent memory as $25/share preferreds and baby bonds fell, on average, $2.95/share. CEF preferreds were off $1.35/share while utilities (not on the chart) were off $1.24/share. Shippers were off about $5.30/share and mREITs $4.23/share. The only item up last week was the 10 year treasury as it climbed .24%

6 thoughts on “Monday Morning Kickoff”

  1. Is anyone else having trouble logging on their accounts?
    Fidelity’s site for 401K’s seems to be down, even though the market doesn’t open for 2 hours.

  2. Fed action is worthless when everybody is locked in their homes. Shutting down economic activity is the problem.

    1. Martin, still out on vacation. Took the grand kids and their families out to dinner last night. The medical aspect of this is not over yet nor is the financial. I don’t think the full aspect of this has hit younger people yet. One is a restaurant manager who heard bars and restaurants are being asked to close, her corp. said they would go to order out with Uber and Door dash. Her husband mentioned after the markets rise last Friday he wondered if the market had hit bottom and now was the time to get in and buy some Tesla and what about options?
      I told them to keep their gas tanks full. If we have a disruption in tanker service the stations will run out.

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