Thursday, April 02, 2020 11:39:42 AM
The US economy is Collapsing at a rate and Depth far worse than what 2008 experienced.........Meaning: US Equities are only Half WAY to the Bottom!!!!!!!!!!!!!!!
My Worst CASE could end up being a Best CASE no matter how much Fiat Currency the Fools in DC Print UP!!!!!!!!!!
The Federal Government needs a Total Restructuring just as any major Corporation would do in a time of Crisis to avoid Bankruptcy......And Folks America HAS the Mother of ALL ""Solvency"" Issues!!!!!!!!!!!!!!
"S&P500 Could Decline To 1,600"
"S&P500 Could Decline To 1,600" - Stocks Facing Worst Outlook Since 2008
by Peter Garnry, Head of Equity Strategy at Saxo Bank
Summary: With all the major central banks expected to be effectively zero bound in 2020, the scope for returns in bonds will be low for years to come.
Equities have hit multiple speedbumps since 2008. But every time, they came back to new all-time highs fuelled by endless policy action, mostly from central banks. Through quantitative easing and lower rates, central banks have engineered a now-evidently unsustainable investment boom in energy that cannot repay it itself, large-scale buyback programmes among US companies and ever-higher valuations for growth companies.
The US-China trade war already started disrupting supply and slowing growth over the last year. In Q1 2020 the world economy was hit by the COVID-19 virus outbreak, creating both a supply (Chinese lockdown) and demand (lockdowns in many countries) shock, in addition to an oil price war between Russia and Saudi Arabia which threatens to significantly impact the US oil industry and global investments in general.
Not since 2008 has the world been this uncertain and out of balance. As equity prices reflect the future and growth prospects, they are the most sensitive to current crisis. Investors are desperate to get out and cash in on years of fat profits.
S&P 500 could decline to 1,600 in worst-case scenario
The last couple of months have given investors a glimpse of what’s lurking around the corner. Countries have entered lockdown, hospitals have been overstretched and demand for certain products and services has been in freefall. The three most important questions for equity investors, then, are:
1. How much will corporate earnings decline?
2. What will the earnings multiple be during the contraction?
3. What will the shape of the recovery look like?
As global pandemics of this type are very rare, all GDP forecasting models can be tossed out the window. We have instead tried to create two types of GDP paths. One is a mild shock to 0% GDP growth and then a quick reversion to trend growth. The other is a 4% drop in growth in a few quarters and a slower recovery that doesn’t quite hit trend growth. Many market participants believe in the base case scenario. But with dramatic lockdowns in Europe and the potential for COVID-19 to become seasonal the impact could become deeper and longer.
Based on data since 1954, we can fit a quantile regression on quarterly changes and log EPS on a GDP growth series. Our two GDP paths produce the following EPS paths:
cont.............
A Visual Odyssey Through All The Market's Dislocations In 56 Charts
Broken Markets: A Visual Odyssey Through All The Market's Dislocations In 56 Charts
by Tyler Durden ZeroHedge
Instead of narrating - often in mind-numbing detail - how broken markets are, for once we will let the charts do the talking. In the visual odyssey through today's broken market, we summarize various measures of market dislocation and stress across asset classes.
Some highlights:
* In DM credit markets, the CDX-cash basis in both IG and HY has compressed notably but remain at historical wides. Agency MBS OAS has reversed much of the widening, while CLO and ABS OAS continue to tighten.
* In the rates market, some pressure in front-end funding markets has begun to abate with some of the announced Fed facilities underway, visible in the recent stabilization of cross-currency bases. However, unsecured front-end spreads (such as CP and Libor) on the whole remain at elevated levels.
* In emerging markets, while cross-currency bases on average have reversed most of the recent widening, swap spreads remain notably wider.
* In equity markets, market depth and liquidity remain dismal.
Going down the list, first we show the most notable dislocations and moves in Developed Credit Markets.
cont!!!!!!!!!!!!!!
""GOLD"" People.........It Will be the ONLY Asset left Standing when this House of Cards BURNS Down!!!!!!!!!
GORO is MY Top Holding and here are some other GOLD Positions that I will disclose.........
Barrick Gold Corp
Barrick Gold Corp (GOLD:NYSE)
20.06 +1.19 (+6.31%)
Newmont Corporation
Newmont Corporation (NEM:NYSE)
49.26 +2.79 (+6.00%)
VanEck Merk Gold Trust
VanEck Merk Gold Trust (OUNZ:NYSE Arca)
15.74 +0.21 (+1.35%)
U.S. Global GO GOLD and Precious Metal Miners
U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU:NYSE Arca)
13.20 +0.66 (+5.26%)
Recent GORO News
- Gold Resource Corporation Reports Financial Results for the First Quarter 2024 • Business Wire • 05/02/2024 11:00:00 PM
- Gold Resource Corporation Will Reschedule Release of Its First Quarter 2024 Results • Business Wire • 04/30/2024 12:16:00 AM
- Gold Resource Corporation Announces Preliminary First Quarter Production Results • Business Wire • 04/16/2024 01:02:00 AM
- Gold Resource Corporation Reports Results of Operations for the Year Ended December 31, 2023 • Business Wire • 03/13/2024 08:59:00 PM
- Gold Resource Corporation Announces Preliminary Fourth Quarter and Year-End Results • Business Wire • 01/30/2024 05:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 10:46:55 PM
- Gold Resource Corporation Reports High Grade Drill Results at the Don David Gold Mine • Business Wire • 12/11/2023 11:37:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/07/2023 02:42:24 AM
- Gold Resource Corporation Reports Third Quarter Operational Results and Announces the Initiation of a Review to Evaluate Strategic Alternatives • Business Wire • 11/07/2023 02:22:00 AM
- Gold Resource Corporation Will Reschedule Release of Its Third Quarter 2023 Results • Business Wire • 11/03/2023 01:48:00 AM
- Gold Resource Corporation Reports the Filing of a SK1300 Initial Assessment for the Back Forty Project • Business Wire • 10/26/2023 10:31:00 PM
- Gold Resource Corporation Announces Q3 2023 Conference Call • Business Wire • 10/23/2023 07:35:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/20/2023 10:01:30 AM
- Gold Resource Corporation Announces Preliminary Third Quarter Results • Business Wire • 10/16/2023 10:34:00 PM
- Gold Resource Corporation Reports Continued Positive Drill Results at Don David Gold Mine • Business Wire • 09/12/2023 10:16:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 08/10/2023 03:15:54 PM
- Change in Chief Financial Officer and the Appointment of Chet Holyoak As Interim Chief Financial Officer • Business Wire • 08/02/2023 10:45:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/02/2023 09:00:11 PM
- Gold Resource Corporation Reports Mid-Year Operational Results • Business Wire • 07/26/2023 08:55:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/26/2023 08:49:33 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/26/2023 08:40:17 PM
- Gold Resource Corporation Announces Year-to-Date Production Results, Reaffirms 2023 Production Guidance • Business Wire • 07/13/2023 10:24:00 PM
- Gold Resource Corporation Addresses Unusual Market Activity • Business Wire • 07/06/2023 09:16:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/05/2023 07:13:24 PM
- Gold Resource Corporation Prepared for Anaem Omot Listing on the National Register of Historic Places • Business Wire • 06/28/2023 12:41:00 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM