Corona Virus: China Has Done a Great Job!

China has done a job. They were caught off guard, they were the first to face it, they were surprised. The disappointing thing to me is that the West is not ready either. We had a 3 month notice in America and yet nobody is prepared. We don’t even have testing kits for more than a million people in a country of 325 million people. China, once they got it together, they took very draconian, swift measures and seem to have it under control. I wish I could say that for Italy.

Stock Market: Panic Is Misplaced

The stock market panic is misplaced. Markets will be OK for a while because central bankers will lower interest rates and governments will keep spending widely.

The U.S. Stock Market Will Rally Back To New Highs

If you ask me today, I would say we would make new highs in the US stock market. Now I use that since it is the largest and most important stock market. I would suspect we would see new highs. We may even have a blow-off bubble. It has been a while since we have had a blow-off bubble in any stock market in the world. So it may turn into a bubble. I do expect at least new highs before the whole thing collapses. 

- in Economic Times (March 4, 2020)

Related trading instruments: SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Futures

Interest Rates Will Go Even Lower

I expect things to be OK for a while in nearly all markets, including bond markets. These guys are going to drive interest rates to unbelievably low levels. This is not good. I want to tell you again, this is not good for the world. But it is good for the markets for a while. 

- in Economic Times (March 4, 2020)

Markets Are Going To Be OK For a While

So now the markets are going to be okay for a while. We may even turn into a huge bubble, because they are going to print a lot more and they are going to spend a lot. It means, in the end, things will be worse, but in the meantime happy days are here. 

- in Economic Times (March 4, 2020)