The S&P 500 has gained a record 39.6% since it hit its 2020 low back on March 23. Not only has that rally erased much of the year’s COVID-19-related losses, it’s also the best 50-day stretch in the history of the market.
After such a strong rally, traders are understandably getting uneasy the market is overbought and due for a pullback. However, from a purely historical perspective, the strongest 50-day periods have generally led to even more gains over the year that follows, according to LPL Financial Senior Market Strategist Ryan Detrick…CLICK for complete article
Rosenberg also warns the return of consumer spending will likely be hampered by high debt loads, especially in Canada, where alarm bells were already sounding over the problem before it entered the COVID-19 economic crisis.
He also believes it’s almost a certainty Canada will lose its coveted AAA credit rating as government relief programs dramatically increase the country’s liabilities. click here for full story
Bank of Canada Governor Stephen Poloz, in his final speech before stepping down next week, said the deflationary risks associated with the pandemic and lockdowns are more concerning than the potential build up of inflationary pressures and vulnerabilities due to the extraordinary measures taken by policy makers.
“Although a minority of observers worry that these extreme policies will create inflation someday, our dominant concern was with the downside risk and the possibility that deflation could emerge,” Poloz said, according to remarks prepared for a speech to the University of Alberta…… click here for the complete article
France, heartbeat of the European social ideal, is facing an existential crisis caused by the impact of the lockdown of its economy.
Talk of a V-shaped recovery for much of Europe is thought to be laughable despite massive…click for full article.
During the earliest days of the pandemic, when medical journals like The Lancet were publishing some of the first non-peer-reviewed studies about the virus by scientists and researchers in China, experts warned about mutations in various strains of the virus, though they insisted that there was still no evidence to suggest that the virus was evolving into something more dangerous and more infectious.
Since then, a flood of new research has been published, and scientists have discovered more discouraging signs of mutation in samples of the virus. And yet, medical experts including Dr. Anthony Fauci have seemed at times overly eager to dismiss these mutations, and claim – without evidence – that there was no reason to believe the virus was evolving and changing in a way that might complicate efforts to create a vaccine.
Which is why we’re highlighting this Bloomberg report from yesterday describing the latest findings from doctors and researchers in northeastern China who are seeing the coronavirus manifest differently among patients in this new cluster, suggesting that the virus may indeed by changing in unknown ways and complicating efforts to stamp it out. CLICK for complete article
A quarter of US restaurants will go out of business due to the COVID-19 pandemic, according to a forecast by OpenTable, which reported that total restaurant reservations and walk-in customers have fallen 95% over the previous year ending May 13.
At the state-level, Florida showed the greatest statewide gain, with foot traffic only down 83% y/y after launching a phased reopening May 4 during which restaurants were allowed to operate at one-quarter capacity.
Indiana, which is now in phase two – allowing restaurants to operate at 50% of capacity – has come in second. The state is planning on a full reopening by the Fourth of July.
“Restaurants are complicated beasts,” said Steve Hafner, CEO of OpenTable parent company, Booking Holdings. “You have to order food and supplies. You have to make sure you’ve prepped the kitchen and service areas to be easily disinfected.”
According to Hafner, state unemployment benefits with the federal booster is one reason why restaurants have struggled to hire help. “A lot of people are making $1,200 a week doing nothing. That’s good pay.”
Meanwhile, restaurateur Danny Meyer – who shut down all of his 19 New York restaurants on March 13, says his dining rooms will stay closed for the foreseeable future, according to Bloomberg…CLICK for complete article