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The market is pricing in a smooth recovery without a second wave of infection. It is not pricing in how much this will affect the poor, due to a cultural and cl
by quickthrowman 7y ago
The market is pricing in a smooth recovery without a second wave of infection. It is not pricing in how much this will affect the poor, due to a cultural and class disconnect. I bet 50% of residential renters don’t pay rent for May.
It seems we’re wildly overextended, but I booked a loss on some short-term puts today so maybe my judgement isn’t the best. I’m still holding longer dated puts because I think we go down, the pre-pandemic economy is gone, we don’t know what’s left.
Edit: There were large outflows from equity mutual funds and ETFs last week. The most ever.
- AznHisoka 7y agoJust hearing Powell, members of the Fed and the talking heads in CNBC makes me think they live in some sort of crazy bubble. To think we can bounce back immediately is absolutely bonkers. Half my tenants can’t pay the rent the next few months, some have lost their jobs, layoffs are now happening in non-consumer industries and software spend is mostly halted. Everyone will be cautious in traveling to public venues, let alone spending a lot on frivolous goods for the rest of the year. There just won’t be a quick bounce back. But I guess if you live in the Hamptons and have a nice comfy job interacting with the rich all day, you probably are unaware of all this..
- sillyconvalley 7y agoThey don't think we can bounce back, but they sure as hell WANT us to. Why? The market goes up and they profit. Look at what motivates people and then the things they say start to make a lot more sense.