FAST FIVE: Markets Remain "Oblivious To Risk"
Markets Remain “Oblivious To Risk” Tyler Durden Sat, 05/23/2020 – 10:20 Authored by Sven Henrich via NorthmanTrader.com, Another week another Fed save as Jay Powell's 60 minute interview aborted the market weakness from the week before resuming in a weekly market gap up which was further fueled by yet another conveniently timed false hope vaccine headline.
Yet markets, the Nasdaq tech monolith aside, have yet again rejected at the previous technical resistance zone as the larger market has so far failed to reach the April highs.
No earnings growth in 2019, a very possible -20% earnings decline for aggregate 2020 and yes, a bounce from a lower base of earnings in 2021, but soon you are looking at an aggregate of 3 years with no earnings growth and suddenly are looking at an economy $30 trillion in debt, a Fed with a balance sheet of $10 trillion dollars with no vision or hope of ever raising rates again with unemployment still north of 10%.
We are discussing a lot of these things in depth in our third extended Memorial Weekend edition of Straight Talk including answering some of the questions you have sent to us.
Please join Guy Adami, Dan Nathan and I for the latest episode of Straight Talk: Note: Following the recording of this Zoom session we noted some Zoom audio issues for Dan and I while Guy's audio is just fine.