How far the market drops? Look at the SPX chart and you can see the Thermoball balls of a yearly graph showing you exactly.
Here is the biggest macro economy facts that supports mt script prediction:
Seizure of the credit market has started and not many people paying attention to it. The credit lenders stoped loans to companies exposed to supply chain disruption after this week's market sell-off. It is kind of like what happend at the repo market last Sept 2019. When debt backed assets loose their value then creditors stop accepting risky corporate junk bonds as leverage. The same exact thing happened a couple of month before GFC.
Credit investors have been rattled by the potential impact on company earnings - now that most realize collapsing supply chains could result in catastrophic number in coming quarters - from disruption caused by the virus, which has seen huge parts of global supply chains shutting down.
with bond markets frozen, companies can't get funding for buyback and for the normal OPEX operation
The freeze of the credit market is far more dangerous to the stock market than the CoronaVirus....expect far more pain for stocks in coming weeks and months as the market's entire buyback spree of the past three years goes into a very painful and dramatic reverse.
Here is the biggest macro economy facts that supports mt script prediction:
Seizure of the credit market has started and not many people paying attention to it. The credit lenders stoped loans to companies exposed to supply chain disruption after this week's market sell-off. It is kind of like what happend at the repo market last Sept 2019. When debt backed assets loose their value then creditors stop accepting risky corporate junk bonds as leverage. The same exact thing happened a couple of month before GFC.
Credit investors have been rattled by the potential impact on company earnings - now that most realize collapsing supply chains could result in catastrophic number in coming quarters - from disruption caused by the virus, which has seen huge parts of global supply chains shutting down.
with bond markets frozen, companies can't get funding for buyback and for the normal OPEX operation
The freeze of the credit market is far more dangerous to the stock market than the CoronaVirus....expect far more pain for stocks in coming weeks and months as the market's entire buyback spree of the past three years goes into a very painful and dramatic reverse.
