Ed, welcome back. Thank you very much youve been bullish for a while and now youre acting on it why was now the time i had concerns that the market would have some concerns about the pandemic, that we did obviously see somes increase in the outbreaks down in the sunbelt, but the market the tenyear has been below 1 you know, there is no alternative, probably never been more relevant than it has been since the fed adopted what i call qeforever on march 23rd. You have what you call a meltup in the market, but you say as you have more of this melt up, you increase the risk of a meltdown. How does that factor into your broader view well, you know, its one thing to be bullish, but at the same time you have to be aware of where the down side risks are. To the extent that the market has a melt up, it puts more air between stock prices and earnings in other words, the valuation multiple has been on fire. We had a p. E. Led meltup from 4. 9 on a forward p. E. Basis on march 23rd now were over 22
Federal reserve launching even more emergency measures. This as the president vows the u. S. Will achieve, quote, total victory over the coronavirus, and says the new trillion dollar stimulus with 500 billion in cash headed to individuals, he thinks it may not be enough. We have news coming up on that. We have also got medical supply shortages hitting hospitals as across the country. Tonight, positive news on drug results to battle the outbreak. President trump today pushing to fast track a dom mon antimalaria drug, chloroquine saying it has shown encouraging results against the coronavirus. Watch this. A drug called chloroquine, and some people would add to it hydroxychloroquine, so chloroquine or hydroxychloroquine. This is a common malaria drug. It is known as a malaria drug and its been around for a long time and it is very powerful but this has been used in different forms, very powerful drug in different forms and its shown very encouraging, very, very encouraging early results.
Down across equity markets 1 . At least we are getting some bounceback in u. S. Equities. But given a 3 drop, hardly any consolation. Further into negative. In australia a low 16 basis points, the flattest curve in australia going back to 2009. Flipping the boards, what else are we tracking . It is not a good day. Msc i down 0. 8 . Home prices nothing to write home about. Ems, 0. 6 . However cheap you think they are, a strong dollar keeping the money away. Uneventful. Dollaryen, 106. That is steady, bodes well if you are looking to buy into this. Joining us to answer that question, ken wong. Agent equity portfolio specialist. Ken opportunities. Over the next couple weeks a lot of Companies Reporting their earnings. Itll be good to see specifically what the guidance will be. We know markets are relatively cheap. You look at that from a historical standpoint. That said, you still have to be careful. Below theirrading Intrinsic Value. A lot of investors are waiting for silence. I was in a
The white house says theres no chance of meeting halfway with china and beijing slams protesters acting like terrorists in hong kong as satellite images seem to show Chinese Forces massed new the border. Talk about wework and its race for an ultimate unicorn ipo. For now, lets get you started with a quick check of how markets closed. We saw the dow lose 800 points, the s p 500 think almost 3 . Sink almost 3 . Every sector almost in the red. We had the nasdaq also losing 3 . It was all of this anxiety over the economy really sending those stocks down. We also had some api data showing that crude stockpiles were rising so that did not help the price of oil. Its about haven demand. The 30year yield also fell yield ands record finished just below that point. U. S. Futures also under pressure, down. 2 , as we continue to see this economic recession fears really gripped the market. Sophie with those recession , the nikkeig large posting a loss of nearly 3 . Haven buying has the yen hovering
Since april and the first time in 47 sessions where it broke the streak of days where the s p hadnt dropped by 1 first time we have seen a loss like this in a while nasdaq was down 2. 2 that was the worst day since february if you look at treasury yeields, we saw action. The 10year treasury pushing higher the 10year is 4. 41 2year at 4. 19 . Andrew, we talked about the market blowing off the downgrade from fitch in the morning. Yields under pressure which is the opposite through the course of the day, yields did pick up a bit i know you have comments from Warren Buffett in a moment i dont know if this is a number of earnings which were better than expected, but some were weaker you have the report. That brought the expectation to bring more pressure on the fed to raise rates that, to me, is a much better rationale than the fitch report. As you know, my view is not that it is silly. It is important to say aloud the world is a relative place. If you downgrade the United States, you have