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Insult To Injury.

Market participants are exhausted with COVID-19.

An "insult to injury" dynamic is beginning to manifest in the news flow around coronavirus outbreaks in the US. Just hours after Florida reported a record rise in cases and a sharp spike in hospitalizations, California said it too logged a record jump in infections, with 7,149 new cases. The near 4% rise far exceeded the seven-day average. In Houston, demand for ICU beds is increasing at an alarming rate. Local councilwoman Sallie Alcorn delivered some disconcerting news in a tweet. One imagines these trends are going to continue. On Wednesday afternoon, Texas said it's experiencing a "massive" outbreak. New cases accelerated by 5,551. It was the second day during which infections topped 5,000. Judging by Wednesday's price action, risk assets are losing patience with this situation. Crude was bludgeoned, for example, as worries about new lockdowns cast doubt on the demand recovery story. Energy shares suffered another body blow and remain a notable laggard in 2020. The figure (below) is simple, but poignant. Broadly, US equities had their second serious selloff in as many weeks, as a combination of trade worrie
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3 comments on “Insult To Injury.

  1. Market participants likely be exhausted with COVID-19 in 2021…this is not ending anytime soon. But just keep buying the dip if that works. That dip might get much larger real soon.

  2. I suspect gold will get some serious momentum as people realize that there is literally no reason to suspect the fed doesn’t continue to keep rates low and stimulus high… many still believe it a barbarous relic but I suspect that the barbarous relic is fiscal austerity.

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