1 Attachment(s)
Mastering The Psychological Challenges Of A Big Market Decline
Attachment 38551
A number of market commentators have noted the historic nature of the recent market drop, which has taken us over 10% lower in major stock indexes in just a few days. My work as a performance psychologist for hedge funds and trading firms has never been busier. The uncertainty and potential economic and market risks associated with a coronavirus outbreak have investors running for the relative safety of investment grade fixed income and away from the very growth stocks that were recent market darlings. How can psychology help us at such periods of risk and uncertainty?
more...
1 Attachment(s)
IMF's Georgieva Says Global Growth To Be Deep Below 2019 Level On COVID-19
Attachment 38591
Global growth this year would be much lower than 2019 level as the coronavirus, or COVID-19, spreads to several countries hurting economic activity, International Monetary Fund Managing Director Kristalina Georgieva said Wednesday.
more...
1 Attachment(s)
UK Chancellor Unveils GBP 30 Bln Stimulus For Economy Amid Covid-19 Outbreak
Attachment 38672
Chancellor Rishi Sunak unveiled a comprehensive stimulus package totaling GBP 30 billion [$39 billion] on Wednesday to support the UK economy as the coronavirus, or Covid-19, keeps spreading hurting people and businesses.
more...
1 Attachment(s)
The Fed Cut Rates To Zero And The Markets Are Plunging Again
Attachment 38743
Sunday evening started with a bang in the U. S. with the Federal Reserve’s Fed Funds target now set at 0% to 0.25%.
more...
1 Attachment(s)
Federal Reserve Reluctantly Embraces Even Larger Role In Economy
Attachment 38942
“The Fed has moved from being the lender of last resort for the banking system to being the lender of last resort for the entire economy."
more...
Fed Minutes Show Some Participants Preferred Smaller Rate Cut
Minutes from the Federal Reserve's emergency monetary policy meetings in March showed a few participants preferred a smaller interest rate cut to slashing rates by a full percentage point at the March 15th meeting.
more...
1 Attachment(s)
Q1 GDP Data Masking The True Global Economic Future?
Total World GDP Output
The total world GDP output was approximately $190 trillion. An estimated 15% to 20% global GDP contraction as a result of the Covid-19 virus event would shave $28.5 to $38.0 trillion right off the top of the 2020 global economic output. Should the global shutdown last through the end of May 2020 (or beyond in some form), we believe the contraction in global GDP could become even more severe.
Attachment 39254
The complicated issues that arise from this global contraction in GDP also bleed over into supply-side economics. As the world attempts to “shelter in place” to avoid spreading the virus and risking more lives, demand collapses. Once demand collapses enough (resulting in price level collapses as we’ve seen in Oil) the result in production/supply issues becomes even more complicated. Unlike Eggs or Milk, one simply can’t bury or destroy other types of supply. The destruction of certain industries, resources, and capabilities will become very real over time as a result of any extended contraction event. The longer-term results of this type of event are sometimes called “stagflation” – where price levels rise as income and economic output stay moderately flat.
These longer-term economic expectations are key to understanding how the recovery process will create opportunities for skilled traders and investors.
more...
