Is a global depression really priced in already?

Discussion in 'Economics' started by NY_HOOD, Apr 3, 2020.

  1. NY_HOOD

    NY_HOOD

    many so called experts are calling for an actual depression. I know we have many safe guards in place but irregardless of that, i dont see how that would be priced into the market already.
     
    KCalhoun likes this.
  2. Hardly. If a depression were price in, the Dow would be <5000.

    The markets are running on the premise that Covid will ultimately be no big deal and soon be over.

    Doubt it.
     
    Last edited: Apr 3, 2020
    trader99, monet and cdcaveman like this.
  3. padutrader

    padutrader

    that is brilliant...and so true
     
  4. S2007S

    S2007S

    I'm actually quite shocked how high markets are today. With what is happening the s&p should be stilling pretty under 1500. And going to sub 1000 levels but remember without free markets you will never ever ever ever ever get real price movement. This is all fuxking make believe since the fed is printing trillions to keep the economy from falling into depression.

    As I said many many many times here over the last years was that the next crisis was going to make the dot com collapse and financial crisis look like it never even took place...so far I'm 97% right but wrong in the fact that markets are 50-70% higher than where they should be at this moment......
     
  5. padutrader

    padutrader

    the reduction of deaths from driving accidents is more than the deaths from the virus itself.that is the reality.
    but the markets are concerned not about human welfare but economic activity and, more specifically, growth of earnings.

    oh what a mystery that is [sic!]
     
  6. padutrader

    padutrader

    i am not.

    predicting the dead cat bounce may be difficult but it takes no genius to see the gore, once it happens

    technicals at work since fundamentals are kind of, in the same place

    oversold conditions can lead to such ........fast moves

    fast moves are more characteristic of ranges and a range makes the most technical sense right now after all the blood on the streets
     
  7. HOGWASH! You don't get it. The ramifications are WAAAYYYYYYYY bigger than that.
     
  8. S2007S

    S2007S

  9. padutrader

    padutrader

    fed has no choice
    if you do not give glucose the patient will be dead.

    unforunately the biggest benefit of loose money is always risky assets.
     
  10. May not be able to prevent. Possible the alternative is high-hyper inflation which bankrupts all of us.

    :(
     
    #10     Apr 3, 2020