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Economists become Virologists as Markets Sicken Investors

February 29, 2020
The coronavirus that originated in China has sent into motion large financial and economic forces that are dominating the investment landscape.  The first line of defense was to contain the virus in China, but the largest lockdown in history did not work.  The next line of defense was Japan, South Korea, Italy, and Iran.  This firewall did not hol…
Economists become Virologists as Markets Sicken Investors Economists become Virologists as Markets Sicken Investors Reviewed by Marc Chandler on February 29, 2020 Rating: 5
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Fallout Accelerates

February 28, 2020
Overview: The dramatic response by investors to Covid-19 continues unabated and worse. The slide is accelerating. The S&P 500 posted a 4.4% loss yesterday, its worst session since 2011, and the sell-off is continuing. Many markets in Asia Pacific, including Japan, China, Korea, Australia, India, Singapore, and Thailand, fell by more than 3%. T…
Fallout Accelerates Fallout Accelerates Reviewed by Marc Chandler on February 28, 2020 Rating: 5
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The Rot Continues but Somewhat Less Dollar Friendly

February 27, 2020
Overview:  A new phase of the Covid-19 is at hand.  Yesterday was the first time that the number of new cases in the world surpassed the number of new cases China acknowledged.  This confirms what we have known, namely that the battle for containing it in China has been lost.  However, it wasn't until the US officials warned of it that the equ…
The Rot Continues but Somewhat Less Dollar Friendly The Rot Continues but Somewhat Less Dollar Friendly Reviewed by Marc Chandler on February 27, 2020 Rating: 5
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Dramatic Investor Adjustment Continues

February 26, 2020
Overview: The warning by the US Center for Disease Control and Prevention that Americans should prepare for an outbreak of Covid-19 sent the S&P 500 tumbling to an 11-week low and the 10-year Treasury yield to a record low near 1.30%. The volatility of the S&P (VIX) jumped to its highest level since 2018. The sell-off in global equities co…
Dramatic Investor Adjustment Continues Dramatic Investor Adjustment Continues Reviewed by Marc Chandler on February 26, 2020 Rating: 5
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Capital Markets Remain Fragile after Yesterday's Bloodletting

February 25, 2020
Overview:  Yesterday's bloodletting in global equities has calmed, but investors remain on edge. Despite all the concerns that the markets were under-appreciating the implications of the new coronavirus, there is a sense that yesterday's moves were in excess. Japanese markets, which were closed on Monday, played catch-up today, and the Nik…
Capital Markets Remain Fragile after Yesterday's Bloodletting Capital Markets Remain Fragile after Yesterday's Bloodletting Reviewed by Marc Chandler on February 25, 2020 Rating: 5
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Stocks Slammed and Yields Drop as Virus Containment Fails

February 24, 2020
Overview: The ring of containment of Covid-19 has grown from China. The new frontline is Japan, South Korea, Italy, and Iran. A lockdown of around 50k people near Milan and Austria blocking trains from Italy is scaring investors. Asian markets fell, but South Korea bore the brunt with a nearly 4% decline. The national holiday in Japan spared local…
Stocks Slammed and Yields Drop as Virus Containment Fails Stocks Slammed and Yields Drop as Virus Containment Fails Reviewed by Marc Chandler on February 24, 2020 Rating: 5
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The Rubber Band Snaps Back: Dollar Correction Begun

February 23, 2020
An exogenous shock disrupts relationships and patterns.  It may be a useful reminder the correlation does not mean 100% co-movement.  The strongest currency in the world last week was the Swiss franc, a safe-haven that rose by almost 0.5%.  The weakest major currency, and third weakest overall, was the Japanese yen, also a leading safe-haven.  The…
The Rubber Band Snaps Back: Dollar Correction Begun The Rubber Band Snaps Back: Dollar Correction Begun Reviewed by Marc Chandler on February 23, 2020 Rating: 5
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Sources of Imbalance and the Pushback Against New Divergence

February 22, 2020
The US dollar's surge alongside gold has eclipsed the equity market rally as the key development in the capital markets.   Even the traditional seemingly safe-haven yen was no match for the greenback.  The dollar appeared to have been rolling over in Q4 19, as the sentiment surveys in Europe improved, Japanese officials seemingly thought the e…
Sources of Imbalance and the Pushback Against New Divergence Sources of Imbalance and the Pushback Against New Divergence Reviewed by Marc Chandler on February 22, 2020 Rating: 5
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