Posted on 02/27/2020 7:59:18 AM PST by ProtectOurFreedom
Strategists at Goldman Sachs just reminded investors why they are dumping stocks hand over fist right now.
The coronavirus may wipe out corporate growth in 2020, perhaps completely.
Goldman Sachs said Thursday in a note U.S. companies will generate no earnings growth in 2020. Underlying the call is Goldman’s view that the coronavirus is expected to spread around the globe and severely harm economic activity. For 2020, Goldman slashed its S&P 500 earnings estimate by $9 and expects no earnings growth. Looking out into 2021, Goldman now sees $8 less in S&P 500 earnings and a modest 6% growth rate.
“Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty,” wrote Goldman strategist David Kostin.
Kostin doesn’t stop there in sounding the alarm bell on coronavirus, however.
“A more severe pandemic could lead to a more prolonged disruption and a US recession,” Kostin said. Under a recessionary scenario, Kostin sees S&P 500 earnings dropping 13% this year. They would potentially rebound to 10% growth in 2021.
(Excerpt) Read more at finance.yahoo.com ...
Congratulations to those who saw this coming and bailed out over 29,000. I sure wish I had, but I've been trained for so long to hold on through these dips because I never get back in soon enough.
But this one is really starting to look like the Black Swan.
Democrat Black Swan.
Yep. Unfortunately - too many people don’t understand what a supply chain disruption is, a global economy and the consequences of putting all your eggs in one or two baskets.
I see an incredible buying opportunity in the near future.
Gee, of all the potential doomsayers, GS is the first
Whatta coincidence huh
Funny how this thing got so serious so fast, once impeachment ended.
Somebody just stepped on the buying gas pedal..for the moment. Quite a reversal just now
As planned
Its not a Democrat Black Swan. They didn’t create it. They ARE overreacting, but the global supply chain disruptions that come with this are well beyond anything an American political party did.
Not everything is about politics. But of course, some in here will never believe that.
Or, as in WWII an urgently accelerated program of re-industrialization could boost us to new economic heights. No one has a crystal ball.
Down 511??
If the reporting of the past couple of days is correct....that you could get it a second and third time....I’ll go and predict that a lot of what is made in China...will drift to US or Mexico or Canada production by the end of 2020. Jobs may be the least of our concerns by 2021.
We’re all gona die!
Now hush.
You’re making things up to hurt Trump.
/s
GS is predicting what many here on FR saw around January 7 or 15.
while the media and many where focused on the fake impeachment...we were focusing on the insane response from China and screaming for to Western world and Trump to get ahead of it....too late now
and we are still getting called names..
I got some face masks to sell if you need some
The ONLY thing certain right now is the Chinese economy is in free fall. However, all the rest of this story is “expected to” “could”, “may well”, etc.
It is just as Pres. Trump said last night. We don’t know.
Still, if you ask me, the greatest danger of dying of this disease is if you are Chinese, smoke cigarettes, and live in full of coal smoke cities. Compute the death rate all you want, but those factors still seem to be some of the strongest in whether you live or die.
Some men you just cant reach.
Agreed. Trump needs to start right now getting production back in this country and in Canada and Mexico. With the new trade agreement, North America could really take off.
30 minutes ago the DOW was down almost 900.
Now it’s down 480.
Maybe no one believes Goldman Sachs.
That should call the bottom. A complete and utter overreaction. BUY.
From CBS:
“ So far, 16,000 people have died and 280,000 people have been hospitalized during the 2019-2020 flu season, according to preliminary estimates from the CDC.” A reported 26,000,000 person infected.
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