If we begin to consider money as something magical that can fix everything, including eradicating the economic side effects of the coronavirus, this opens the gate for nasty economic surprises...
"At this point, the low growth, low interest rate environment we’ve been in has created tremendous dispersion in the markets between the winners and losers. Three trades in particular have received the most attention..."
As global supply chains - most of which pass through China - crash and burn, Chinese end-buyers have two words for all those sellers who are now facing imminent bankruptcy: "force majeure."
Without making any prediction about how long this crisis will persist there is one absolute truth about business - that is, when commerce is interrupted, slowed or idled completely company revenues and profits drop hard.
Stocks, gold, oil, and just about everything else are trending higher, despite the ongoing concerns about the coronavirus, which continues to spread across the globe despite many countries' best efforts to contain it.
