https://www.marketwatch.com/story/w...s-wrong-with-america-2020-04-12?mod=home-page Why this screenshot of CNBC’s ‘Mad Money’ host Jim Cramer is ‘everything that is wrong with America’ Published: April 12, 2020 at 1:13 p.m. ET By Shawn Langlois In many ways, last week was one of the darkest stretches in American history. The coronavirus death toll in the U.S. — now approaching 21,000 — skyrocketed as families continued to huddle in their homes in fear of what’s next, while an unthinkable number 6.6 million people filed for unemployment amid an economy grappling with a devastating shutdown. Yet, somehow, the stock market managed to stage its best week in decades. In other words, at least those fortunate enough to own stocks had something to smile about. Democratic strategist Justin Horwitz summed up the disconnect with this tweet that went viral across Twitter TWTR, -0.32% : As you can see, that’s CNBC’s Jim Cramer cheering the rally in the market while the chyron points out the grim reality of the job losses, which reached more than 16 million in three weeks. One commenter captured much of the response on social media by saying, “The Dow is not the economy. It is a giant government sanctioned Ponzi scheme for the wealthy.” Another pointed to the fact that, according to Federal Reserve data, 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans — essentially Wall Street vs. Main Street. There is some history to back the move. In an analysis published Thursday, investor Ned Davis pointed out that the stock market does better than average when unemployment spikes. Davis’ research shows that a jobless rate over 6% correlates with the stock market rising 13.7% per annum. “How can this be?” Davis wrote. “It defies logic. My explanation would be that this news is widely followed, and the market tends to look ahead. So it is probably priced in.” Of course, the Federal Reserve has a lot to do with that, as well. “When you remove near term bankruptcy risk from every publicly held company regardless of credit rating or near-term financial condition, asset prices should rise,” DataTrek’s Nicholas Colas wrote in a note published on Friday. “Markets know that no matter how bad cash flow might be there is a Fed loan backstop waiting in the wings if needed.”
This! And if you think of the S&P as one long DCF Chain than 1-3 Quarters don't hurt you that much in the grand scheme of things. When ppl say the market should be down at least as much as 2008, that's like saying I have to devalue my restaurant by 50% because I have to close it down for 6 months to renovate it. Market was panicking that cash flow shortage would lead to bankrupcy. FED came in and said they would back it, hence we only take out the 2-3 Quarters of lost revenue for some industries out of the DCF Model to value the S&P. It's all about when the Economy will reopen now
Add to that politisation of everything. COVID-19 Patients Given Unproven Drug In Texas Nursing Home In ‘Disconcerting’ Move By: Vanessa Romo, NPR, April 10, 2020: Concern is mounting after a doctor at a Texas nursing home started giving the anti-malaria drug hydroxychloroquine to dozens of elderly patients diagnosed with COVID-19 and tracking the outcomes in what he’s calling an “observational study.” Michigan Governor Bans Gardening, Sale Of Fruit and Vegetable Seeds, Gardening Supplies Prohibited (but you can buy weed to stay brainless) and this Dr Fauci's model is a Medieval model...
one more thing, the US market is the most "free" market we've got. Looking at the EU, Government already announced they would buy up Equity so that companies won't fall into foreign hands. So anyone who is complaining about the FED buying Bonds, wait till they start buying ETFs. Or maybe try trading in Asia, where you can't short Companies like in China or where the BOJ is buying stocks and no price discovery is possible because of decades of distortion.
LOL "free" with the fed buying everything in sight and also Chumpie pressures buddy Putin and the Saudi's to cut crude production. Free, free, free.
Its a free market if you're a corporate monopoly with lobbying power: 1. Free money 2. Free do-overs 3. Free labor 4. Free IP 5. Free taxes 6. Free royalties 7. Free monopoly enforcement It's a bonanza!