My Alert: Spread widening will be killing all the traders

Discussion in 'Forex' started by Price Action Guru, Mar 25, 2020.

  1. My Alert: Spread widening will be killing all the traders

    Why? because the upcoming job losses will be unlike anything the US has ever seen

    When the damage the corona virus inflicts on the U.S. jobs market becomes clearer, it could be unlike anything the country has ever seen.

    Judging by numerous forecasts from economists, the avalanche of furloughs will easily break the record for most in a single month.

    Upcoming weekly jobless claims will shatter the standards set even during the worst points of the financial crisis and the early-1980s recession, with Bank of America forecasting a total of 3 million when the number is released Thursday. Those figures are expected to be so bad, in fact, that the Trump administration, according to several media reports, has asked state officials to delay releasing precise counts.

    While the headline unemployment rate is highly unlikely to approach the 24.9% during the Great Depression, it very well could be the highest in almost 40 years, something unthinkable for a jobs market that had been on fire as recently as February.

    So, my advice is to stay out during this time. most of the brokerage will reduce the Leverage and increase the spread widening.

    Trade safe

    Price action Guru
  2. People are definitely losing their jobs left, right and center. At least three people I know directly or indirectly in the last 5 days.

    Nicely done, China.
  3. But this is all temporary.
    Nobert likes this.
  4. Lots of small and large companies without gov't support could go bankrupt. This has not happen since 1930 Where GDP was reduced by 30% for a year. 40% unemployment if the shut down is over 6 months . it is already 25% now!
    The great depression was only 'temporary if you consider 5 years is 'temporary' by 1935..the economy was getting back as gov't 'stimulating' the economy. Before it was over, people lost millions in stocks as companies went bankrupt. inflated bull time evaluations vanished.
    this crash is errily similiar to 1929 crash. it's just happened suddenly
  5. southall


    Ofcourse its temporary, even the great depression was temporary
  6. More temporary than that. Because it's not based on unwinding of leveraged loans.

    Unless it causes that to happen, which is yet to be seen. But even if it does, it won't cause a complete meltdown.
    MKTrader likes this.
  7. zdreg


    People suffered for 12 years during the Depression.
  8. zdreg


    re: bankruptcy in your future
    Companies are leveraged to the hilt. They became addicted to low interest rates. These companies will go bankrupt, when debt matures and interest rates may be higher or loans unavailable from banks or there may be no public appetite for bonds.
    Last edited: Mar 25, 2020
  9. bh_prop


    You're really on to something here - I'm sure the market isn't discounting job losses or slowing economy in any matter. Go all in short, what could go wrong
    MKTrader likes this.
  10. akine


    A new economic model is on the horizon and it will not be $ based!

    I dont say short your $s but find something to accommodate it.

    Days of printing green ink on wc papers is over.
    #10     Mar 25, 2020