bonds Markets risk parity stocks

1987

It looks as though it's time to finally exorcise all our post-crisis demons. 

Pretty much from the moment Donald Trump began speaking during an ill-fated address to the nation on Wednesday evening in the US, it was apparent that global equities were doomed. To be sure, news flow on Tuesday and Wednesday indicated that lawmakers and the White House were nowhere near consensus on what, exactly, to do when it comes to crafting an economic relief package large enough to convince the market (and, much more importantly, the public) that elected officials are on top of things when it comes to responding to the coronavirus outbreak. Seen in that light (and considering Trump's somewhat spotty record when it comes to Oval Office addresses), it probably shouldn't have come as a surprise that the president failed to pacify nervous traders. And yet, the bottom fell out. We are, quite simply, in the midst of one of the worst stretches for US equities in history. Monday and Thursday will go down as two of the most spectacularly bad sessions ever. The S&P fell 9.5%, the most since 1987. Every sector fell at least 7%. We're near GFC territory on the VIX. Thursday was the worst day for European shares in history. It was also the worst day for Italian bonds on re
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11 comments on “1987

  1. StefanoV says:

    And with all of this, I cant notice that AAPL closed at 248$. Down almost 10% today, yes. But it was at 220$ around 3 october 2019, that is when the last & most absurd bull run started. So after all this carnage AAPL is still around up 15% from the October “bottom”, which was actually not a bottom but a very small sell-off.
    Does this mean something? SP500 closed a 2480, ca 6% from the 2018 bottom (2346); at the time, AAPL bottomed at around 150$. So, what happens if AAPL goes down to 150$, that is to a P/E of circa 15?

    • George says:

      I am still looking for capitulation and I never ignore a glance at the FAANG group for signs… Waste Management and John Deere also indicate that a bottom is a ways off yet….H….talks a lot about the unlimited resources of the Fed printing presses but that topic does not meet my idea of Objective Criteria…20-20 tells all….

    • Apple is sitting on a massive cash hoard (mostly overseas). I doubt that its stock is heading back to $150 per share because Apple can continue share buybacks indefinitely.

      • StefanoV says:

        The massive cash hoard is around $200bl, or circa 50$ per share. Neither cash nor buybacks will play much of a role in the next days, there are greater forces at work.

  2. MoreEqual says:

    “Ill fated address” indeed.

    Trump has gotten away with lying to the American people about all sorts: N Korea is no longer a nuclear threat, the press is the enemy of the people, Mueller was a hoax, Impeachment was a hoax. Republicans have shilled for him. His administration has sugar coated, walked back, covered up, misrepresented. And everyone moved on because none of the lying and bombast has ended up mattering.

    Well, Donald Slump is learning fast that he cant lie about things that are consequential to the relationship between the big-swinging-d**ks on wall street and their money.

    “Everyone can get a test who wants one” and “we’re going from 15 to 0 very quickly, its like a miracle, it disappears” will go down as the dumbest things to ever be uttered during a crisis. (With “i’d prefer the 22 not come on shore because I really like where our numbers are” as a close third.)

    Of course today he’s splurging his twitter with “handy guides” to staying sickness free. What a joke.

  3. Anymouse says:

    I lost $12K in 1987, seemed to be a lot of money at the time, since my portfolio was $36K.
    Now I lose a quarter mill.

  4. Mr. Oxygen says:

    I do not allow trump into my living room so I obviously did not watch the speech. However it sounds like it may have marked the beginning of the end for the MAGA VIRUS.

    1987 I was helping Daryl and Roxanne paint their neighbors house during the day and mourning the loss of our decades old rock and roll station to a country channel on a cheap jam box while drinking cheap beer.
    9too me
    Exhausting day executing dry powder, having a not cheap import N/A that still manages to hit the spot and listening to digital files on my 1981 amplifier and my self restored vintage speakers.

    One of these days I am going to design a “Fire the Maga Virus” slogan and copyright it; in fact i just did.

  5. MacroGuy says:

    Stefano- that could be possible- I’ve seen a recent repricing of AAPL @ $150-$200, First to sell gets the best price 🙂

  6. hookandgo says:

    H-Man, my CAT 5 estimate omitted three hurricanes on each coast. Slight miscalculation.

  7. John3D says:

    How much money has to leave the market before all the cash parking spaces are full? Is this how the economy expels all the cheap liquidity that has been injected since 2009. If so, then the rebound may not be much more than sideways once the bottom has been found.

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