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 ...
I’ve had plenty of human contact.. Many friends.. Huge family with many nephews, nieces. great nephews, great niece’s.
When I got divorced and stopped getting the flu shots along with my husband, I stopped getting the flu. When I was married and getting flu shots I often got the flu Twice a year.. consecutive infections! And I was sick as a dog for three weeks every time.
What is “wiping out “ anything is the snow flake attitudes and pearl-clutching. People seem to too readily go a panic mode.
Wow. What did you do for a living that had you in contact with so many sick people?
Did you smoke?
That is unusually high “sick” rate.
(I did not get a flu shot this year either. knock on wood.)
I guess the lack of any shipping from China might have a little to do with it. But I am just guessing.
This has been discussed since the first week of January.
The Left would be happy of millions of Americans died if they could get one of their elected. That’s how much they hate Americans.
I worked in retail and my ex-husband ‘drove a desk’ for the Federal government. He almost always got sick before me.
I'm also in some 17 April calls on DVN, FLIR and USO and also added some SPY calls (also 17 APR) at the end of the session. My strangle on QQQ is off the chain. Give FLIR a look. Seriously....
But I think this actually inoculates Trump from any economic shenigans—this or otherwise—that they might try to pull on him before the election.
People know he straightened out our economy. The coronavirus only underscores how right he was about China and domestic manufacturing all along.
He won’t get blamed for the virus and even therefore for any economic hit we take in the aftermath of it.
I used to trade FLIR back in the good ole days. I didn’t even know they were still a “thing.” I will give them a look.
.
Excellent pun.
Nope. Not so at all.
Reading comprehension, please.
I said these things, not as individual items, but all together: the greatest danger of dying of this disease is if you are Chinese, smoke cigarettes, and live in full of coal smoke cities.
The Chinese is simply because that's where it is ongoing.
Imagine a China whose cities are as clean as the United States, with as few as smokers as the United States. It's possible that coronavirus wouldn't even be registered beyond being sick. Pneumonia kills those with very damaged lungs.
I say this as an exsmoker, 3 packs a day, for 25 years. It's been 20 years since I quit, but my lungs still suffer for it.
As long as you don’t inhale it.
I love the smell of a good cigar, but can’t smoke them.
As an 1/4 century ex cigarette smoker, I instinctively inhale half the time. That hurts the next day.
I’ve been over reading a sports board discussion of this, and they aren’t buying that we’re not testing people.
I don’t care what Trump’s team is telling him in terms of strategy to stave off a panic—he’s gonna get blamed for it if this blows up after Trump’s admin says there’s no need for broader testing and we’re doing a great job with just 15 cases.
Do we stop here on the SPY - or Are we going to the weekly 200 - which is 263 - because we just blew through the 50. We bounced off the 200 back in Dec 2018.
Maybe we are going to the monthly 20 - which would be 291 - but the monthly 50 is also around 263. And we don't even want to talk about the monthly 200 (185 - Feb 2016 levels)
Yes...you are right. I don’t inhale them.....
The ones that are hurt are the dem candidates. Their message is crushed.
Trump is beyond bad news and he will only thrive with this choas. And from now until election day choas like this x10 will rule the day. Trump has no downside. Let the world scream.
The risk to Trump is the combination of lack of testing and his defense thereof.
The CDC is supposedly going to let more do the testing now, but if it is too late and this becomes major, there may still be some Katrina risk to Trump.
Gail Collins - what a twit.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.