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 ...
They should forbid short selling for a few months
We're doing both, we just don't need the end is near camps that are popping up.
Or countries as the case may be. There is a piper to be paid for mass import of cheap consumer goods(let alone essential products like medicine) from a single country. Loss of US manufacturing jobs was just a part of that tune.
Yes!! In the powerful Holy name of Jesus I stand in agreement with you!
Am I wrong in thinking their doomsayer in charge is not fond of our sitting President? I am beginning to think political bias is fueling many of such statements.
From the tap of his fingers to the minds of his Army, ride the storm or abandon ship.
Donald J. Trump@realDonaldTrump
Feb 26
Low Ratings Fake News MSDNC (Comcast) & @CNN are doing everything possible to make the Caronavirus look as bad as possible, including panicking markets, if possible. Likewise their incompetent Do Nothing Democrat comrades are all talk, no action. USA in great shape!
Yes, the stupid does burn bigdaddy. Plausible deniability. Too many Deep Staters jumping on board. It is being hyped to the nth degree.
Might not be, but what IS brain-dead stupid is dismissing the possibility outright after all the “coincidences” we have seen the last 30 years. At your own peril. . . .
Did the Spanish Flu cause a worldwide depression? Ever heard of the Roaring 20s?
Yup..thank God I was a worry wart and took all by 401k out of equities about a week ago.
LOL, please, lets not toss doomsayers into a frothing meltdown.
This year pay raise did not come because of last years profit loss due to the China trade war. I figure if a little trade war effected my paycheck so much, what would a supply chain disruption do to the stock market
Buffett reminded us in an interview the other day we need to look 10 to 20 years out the market always recover. I dont have 10 to 20 years; I redirected my 401K and other investments to low risk funds.
I also paid off all debts except for the house, I am ready for the rough ride. I will keep my eye open on buying opportunities like oil stocks and etc.
I’m sitting here listening to some very loud music while I work. I really don’t give a damn who’s singing, or what they’re singing about. I’m enjoying the songs, and it has nothing to do with politics.
I’m going to a nice dinner with my wife this evening. Has nothing to do with politics.
If “every is about politics” in your world, then you live a very sad life.
America is, has always been, and will always be Protected by God.. as long as we believe in Him. It really is that simple.
FR is devolving into the take it seriously and its no big deal camps
For some reason the “no big deal” camp thinks it is evolving into the “no big deal camp” and “we are all going to die camp”...and then calls the other side all kinds of names
the take it seriously camp never said that we are all going to die
“Democrat Black Swan.” that is as bad as Russia Russia Russia
I don’t think the Democrats would create a virus to create global supply shortage that effects the Stock Market.
I do think the Democrats will turn this crisis into political issue, that would be rule: “Never let a crisis go to waste”.
Nice catch. I wonder what % of the Chinese population took the vaccine.
If a person is at high risk of complications from a flu virus they should be making sure to avoid potential exposure to Covid-19. Which would mean taking extra precautions such as avoiding travel to certain places. For most healthy people following the standard mantra of, “wash your hands, use a tissue when sneezing, avoid sick people”,etc. should be enough.
And people might want consider raising the temperature on their water heater and line drying clothes in full sunlight whenever possible.
My passive contributions are stuck, but there sure won’t be anything more going in for a while.
Hopefully, by the end of the year, this thing has run its course and we can have a good 2021.
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