The economic blows keep coming–
–earnings are brutal, guidance pulled
–20% unemployment min with another 4.4 mill jobless claims
–PMI crashes around the world
–6.4% of mortgages in forbearance, 764 billion unpaid principal
–Durable goods -14.4% –Google slashes marketing budget 50%
–and the Nasdaq is only down -1% YTD!
Here comes the FED meeting–
–expect hints towards the fed next bout of stimulus –
-FEDs got nothing but rhetoric
–will markets turn on the FED?
Putting your capital to work–
–Do you buy now?
–correlations are high
–private equity is throwing capital at distressed firms
–are markets in denial or immune because of backstops?
SPX Expected Move
–last week– 111.00 (expected)
–actual move– 37.82
–next week– 85.67 (expected)
–11 out of the last 15 weeks have seen moves OUTSIDE the EM
