Stocks Just Had Their Best Week in Decades

Breitbart ^ | 9 Apr 2020 | John Carney

[E. Pluribus Unum]

The bulls broke loose in financial markets this week and gored the coronavirus.

The Dow Jones Industrial Average rose a mild 1.2 percent on Thursday, bringing its weekly gain to around 12.7 percent. That makes it one of the best weeks ever for the blue-chip index.

The S&P 500 climbed 1.45 percent for a weekly surge of 12.1 percent. That is the best week for the S&P since 1974. The Nasdaq’s 0.77 percent gain brings the week to 10.6 percent, the best week since 2009.

The Russell 2000 soared 4.62 percent on Thursday for a weekly gain of 18.5 percent.

Oil had a wild ride. Brent crude jumped up to 12 percent higher in the morning, only to fall all the way back to close down 2.71 percent for the day.

American stocks will be closed for Good Friday tomorrow.

[E. Pluribus Unum]

Buy! Buy! Buy!

[Zhang Fei]

After the worst month in 100 years, that’s not much of a comfort.

[Paladin2]

No they didn’t.

They are barely on some kind of ventilator.

The last week needs to be kept in context.

[Track9]

I put all my money in airline and Cruise stocks. Hope I don’t turn out to be an etrade add.

[rlmorel]

If you believe in America and the power of our way of life, you buy. Now.

If you don’t...and you are right, money won’t be worth a damn anyway, so you might as well buy.

(my opinion...:)

[Mr Fuji]

A lot of the financial pundits are talking about this being the next big bull market. I can’t see the future but I can’t help but think this a bull trap.

[867V309]

they eventually figured-out:       it's the flue, bro.

we're being lied to, big time

[Pearls Before Swine]

Airlines... maybe.

Cruise stocks, I think not.

My reasons are as follows:

- the US gov’t will support airlines as essential
- It won’t support cruise lines, as they are largely non-American in terms of ship flagging and employees
- Personally, I could see myself on an airplane after things die down with a couple hundred people and a face mask for a few hours,
- But not on a ship for a couple of weeks with several thousand people.

I don’t think people will be as eager to cruise as they were for a while. Flying will come back first.

[choctaw man]

Contact Senator Richard Burr, he should be able to help you out.

[Track9]

As soon as I bought Delta, I heard Buffett sold all his. Figures. My investing is like slow Joe’s foreign policy advice. Do the opposite as fast as you can.

[Fightin Whitey]

Well, you made me laff out loud, though I do sympathize with your hard luck in stocks.

[Zhang Fei]

[A lot of the financial pundits are talking about this being the next big bull market. I can’t see the future but I can’t help but think this a bull trap.]

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It’s a little hard to say. The repo market froze up a little earlier, with margin calls being issued for loans collateralized with non-agency asset backed securities. There were a number of liquidity events in a lot of asset classes, which is why the Fed waded in with both feet. Now that the liquidity situation has stabilized somewhat, we may see some recovery in asset prices. But getting back to even could take years. It certainly did in 2008, and there wasn’t the uncertainty of a pandemic that, for resolved cases, has a ratio of dead to recovered of 4:6.

https://www.worldometers.info/coronavirus/country/us
https://www.worldometers.info/coronavirus/country/italy/

I had assumed that Italy was an outlier. The problem is that for resolved cases, we are becoming Italy. And then there’s that nasty unresolved question of what happened in Bergamo, such that for March, this year’s death numbers were 6x last years:

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https://www.ecodibergamo.it/stories/bergamo-citta/coronavirus-the-real-death-tool-4500-victims-in-one-month-in-the-province-of_1347414_11/
[We compared the number of deaths over the first three months of this year with the average figure of the last three years, in order to verify the increase in mortality across Bergamo’s territory - explains Aldo Cristadoro, founder of InTwig and professor in Digital methods for social research at Bergamo University -. Our evaluation, carried out with great accuracy by means of the official data provided by each local administration, tells us that during the month of March more than 5.400 people have died, and approximately 4.500 of these are ascribable to coronavirus. One year ago, in March, the total deaths were almost 900]

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Eco di Bergamo is a local paper serving Bergamo province’s 1.1m people:
https://en.wikipedia.org/wiki/L%27Eco_di_Bergamo

[daler]

“Contact Senator Richard Burr, he should be able to help you out.”

While no fan of Burr or Loeffler, I find it interesting that Dianne Feinstein has been predictably dropped from the discussion.

[gibsonguy]

You have nerves of steel my friend. I really hope you made a good bet. You will be slammed for the cruise stocks but I have hopes for those. Millions of people love cruises and it will be back but that will take a while for sure. The Petri dish thing is an exaggeration and can be easily mitigated.

[Pearls Before Swine]

To confuse things further, I’ll mention that I read that the Saudi sovereign fund purchased 8.2% of Carnival Cruise line at an average price of $17.82, about 3 days ago. It’s dipped well below that and partially rebounded.

[Track9]

As soon as I start talking about stocks, I slap myself in the head and remember how many times my basic economics was fooled by the vagaries of crony capitalism. I once even bought some ‘social justice’ stocks to spite my loosings. Wouldn’t you know it, I made money.

[Pearls Before Swine]

Also, Buffett sold about 1/6 of his Delta position, not all of it.

[Track9]

I’m old enough not to give a darn anymore. Plus, I turned 21 in Texas.

[Track9]

Oh. That’s good to know.

[Theoria]

With $2.3 Trillion Injection, Fed’s Plan Far Exceeds Its 2008 Rescue-The Federal Reserve said it would buy some municipal bonds and some riskier debt to help governments and companies.