Posted on 02/27/2020 7:59:18 AM PST by ProtectOurFreedom
Strategists at Goldman Sachs just reminded investors why they are dumping stocks hand over fist right now.
The coronavirus may wipe out corporate growth in 2020, perhaps completely.
Goldman Sachs said Thursday in a note U.S. companies will generate no earnings growth in 2020. Underlying the call is Goldmans view that the coronavirus is expected to spread around the globe and severely harm economic activity. For 2020, Goldman slashed its S&P 500 earnings estimate by $9 and expects no earnings growth. Looking out into 2021, Goldman now sees $8 less in S&P 500 earnings and a modest 6% growth rate.
Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty, wrote Goldman strategist David Kostin.
Kostin doesnt stop there in sounding the alarm bell on coronavirus, however.
A more severe pandemic could lead to a more prolonged disruption and a US recession, Kostin said. Under a recessionary scenario, Kostin sees S&P 500 earnings dropping 13% this year. They would potentially rebound to 10% growth in 2021.
(Excerpt) Read more at finance.yahoo.com ...
Given what we have learned about the Deep State the past three years, would you really put this past them? Im not one given to conspiracy theories, but this is remarkable coincidental. And, with the DS, there are no coincidences. Especially related to Donald Trump in an election year.
It's gonna get worse...
We stand in agreement with Your Mighty PROMISES on behalf of PRESIDENT TRUMP and AMERICA:
In JESUS' Name we pray. AMEN.
We haven’t even had any layoffs of note. There is a lot of carnage that could come from this crisis, but maybe it is a good time to read the tea leaves and get in too. I was one of those that got out at S&P 3150 before the China trade deal Phase I. It has been painful to watch it go up to near 3400, but now things look good again.
I just dont see where you are going to get the production machinery and trained workforce in that short amount of time.
DUmocrats are actively using the virus to tank the economy to affect the outcome of an election.
Well, the good news is that we are not in a recession until there have been two down quarters, so once the election is inside a six month window, we can’t have a recession before the election. :)
Do not feel alone. I did a hind cast once on market signals for timing the market as suggested by some soothsayer. It didn’t work.
I believe there are many, like goldman sucks, who are working very hard to parlay this into a panic to destroy Trump. Impeachment failed and this is the next opportunity that has fallen into their lap to use against him.
The problem with the market’s reaction to events is the plunge followed by the grueling climb back out of the pit and calling that return to the mean “growth”. It isn’t. Recovering ground you have already taken is less than inefficient. It is a slogging wearing down. Fear is a much bigger motivator to action than hope.
Besides, selling out at the peak would have resulted in massive capital gains leaving me with the same amount of asset and less money to grow when things get better than I have now.
...we were focusing on the insane response from China and screaming for to Western world and Trump to get ahead of it....too late now...
thats is Chicken Little Shiite not facts
Yeah, i’m pretty sure the deep state didn’t create a respiratory virus, and plant it in Wuhan China in the expectation it would kill thousands of people and tank the global economy. Please tell me you don’t honestly believe something this stupid.
This Coronavirus will not live up to the Doom and Gloom many on this site desperately desire.
Just like influenza, this will begin tapering off in the next month or so.
If the deep state is all powerful enough to create some deadly virus, why plant it in China? Why not just plant it here? We don’t even a have a problem yet.
Geez, the stupid. It burns.
If people want to know the real reason that the infected in China had such a drastic resounse, read this:
https://www.ncbi.nlm.nih.gov/pubmed/22536382
People who received the vaccine for SARS-CoV in 2002 were left susceptible to a massive over response after re-infection.
The SARs epidemic in 2002 was caused by a CoronaVirus. That virus is a cousin to the current CoronaVirus COVID-19
More like a black turkey. One of the things that will come out of this is moving some of the critical supplies back to the US. This thing has shown everyone our vulnerability and we need to fix that.
Goldman Sachs is manipulative deep state. They will get some short term gain out of this, but long term no.
Never let a crisis go to waste.
“Not everything is about politics. But of course, some in here will never believe that.”
Everything is about politics and if you don’t believe that you probably never will.
FR is devolving into the ‘take it seriously’ and ‘it’s no big deal’ camps.
Reminds me of the Buchanan and Rudy wars so long ago.
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