Well the 1.3T virus bill has passed the senate. It's sure a scary number but it had to happen. It's not going to stop the virus, but it might prevent a very serious recession. This is all we could hope for to fix our portfolio values. We'll have to hope the market is forgiving when the numbers are bad. Some of it has to be baked in already with a lot of quality stocks down a full 50% and trading at prices not seen for 5 years. I'm certainly not calling a bottom, but this gives me hope we are looking at far less BKs and excessive dividend cuts.
Companies that survive need to heed the warning. I don't expect them to survive months with zero revenue, but I'm starting to wonder if some of them could endure a severe winter without it stressing them. We have all benefited from the huge share buybacks. (and so have the company boards with their huge stock compensation). I'm starting to re-think the wisdom of that now. I'm not at all a class warfare guy, but they could just retire and leave us with worthless shares. BA and the airlines are a recent example.
Companies that survive need to heed the warning. I don't expect them to survive months with zero revenue, but I'm starting to wonder if some of them could endure a severe winter without it stressing them. We have all benefited from the huge share buybacks. (and so have the company boards with their huge stock compensation). I'm starting to re-think the wisdom of that now. I'm not at all a class warfare guy, but they could just retire and leave us with worthless shares. BA and the airlines are a recent example.