Article

2020-05-26 Economy

Dow futures jump 500 points as investors bet on the economy reopening and a vaccine breakthrough

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Posted by Besoeker 2020-05-26 07:39|| || Front Page|| [7 views ] Top

#1 Bet on the economy. F*ck the vaccine.

Posted by M. Murcek 2020-05-26 07:55|| 2020-05-26 07:55|| Front Page Top

#2 'pump-n-dump' is how they make their money.
There won't be a vaccine (soon), and business won't be able to reopen because they can't recall their help fast enough.

Suggest values fall @Wed/Thurs.

Posted by Skidmark 2020-05-26 09:39|| 2020-05-26 09:39|| Front Page Top

#3 The stupidly large injection of unnecessary money to the usual suspects will keep the stock market over pumped. It will all be about getting out at the right time. As always.

Posted by M. Murcek 2020-05-26 10:14|| 2020-05-26 10:14|| Front Page Top

#4 It's a stock-picker's market. Aside from buying Skid's favorite hooch-maker, there are plenty of good picks out there. Southwest is a top pick.

If a company is priced as if it's going bankrupt but in fact has plenty of cash in the bank and zero risk of going bankrupt, then its stock is a Buy.

For example, Buffett may be right about the airlines with weak balance sheets, mediocre management and lots of international exposure, but none of that applies to Southwest. That well-managed and lean airline doesn't need to completely fill its planes with passengers in order to keep going. Last I checked they have s.t. like $12 billion in cash reserves (including a recent infusion of $3B from Uncle Mnuchin) -- so even at 50-60% passenger capacity they could keep on burning $20m per day and stay afloat for years. In the meantime they can offset the lost passenger revenue with new cargo revenues.

Posted by Lex 2020-05-26 11:22|| 2020-05-26 11:22|| Front Page Top

#5 And now Obama's top economic adviser is agreeing with Kudlow and Hassett that the economy will rebound rapidly.

Democratic economist Jason Furman points to data indicating that this recovery will be similar to what we see after a hurricane or other natural disaster. Echoing Kudlow, Furman says that in Q3 "We are about to see the best economic data we’ve seen in the history of this country."

Posted by Lex 2020-05-26 13:21|| 2020-05-26 13:21|| Front Page Top

#6 Jason Furman:

"You could easily have 1 to 2 million jobs created a month in the four [jobs and unemployment] reports before November,” he said.

“And then toward the end of October, we will get GDP growth for the third quarter, at an annualized rate, and it could be double-digit positive economic growth. So these will be the best jobs and growth numbers ever.”

Posted by Lex 2020-05-26 13:52|| 2020-05-26 13:52|| Front Page Top

#7 I would expect the never-Trump brigade of Socialist and Rino econofreaks to try and talk up expectations so Trump's recovery can't possibly make them. Then they blame him for the failure to meet "their" ridiculous predictions.

Posted by AlanC 2020-05-26 13:55|| 2020-05-26 13:55|| Front Page Top

#8 Economic panics are always artificial in every way except for the people tossed out of work. This one will snap back with a vengeance.

Posted by M. Murcek 2020-05-26 16:39|| 2020-05-26 16:39|| Front Page Top

#9 The only scary thing is that the people who would like to collapse the economy on a whim now know it will take more than a mask panic to do it.

Posted by M. Murcek 2020-05-26 16:40|| 2020-05-26 16:40|| Front Page Top

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