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The COVID-19 and Markets site is intended to house a daily missive from David Bahnsen, Chief Investment Officer at The Bahnsen Group. While the weekly Dividend Cafe has served as macro-commentary for many years covering a wide array of topics and principles and best practices for investors, this COVID and Markets site will specifically focus on daily nuggets around the health data, market realities, policy developments, and economic ramifications of this coronavirus era. The intention is for this site and daily endeavor to cease when we are on the other side of all this, and quite frankly, the hope and prayer is that that moment come sooner than later.
So expect a DAILY missive at covidandmarkets.com for the foreseeable future,
And expect a WEEKLY commentary at dividendcafe.com until Kingdom come.
As I submit, the overnight futures (Thursday night, Friday morning) are ripping higher on word that a COVID therapeutic is having great success in trials.
The market opened down 500 points, and stayed down ~600 throughout the day, and closed in the middle of that range down 450 points.
The DJIA opened up and stayed up, closing at +558. I do believe for equities to see ~25,000 Dow there likely needs to be high 20’s oil, not low 20’s oil.
In terms of market technicals, the breadth of the recent market rally is that 99% of S&P 500 stocks are above their 20-day moving averages.
The stock market’s four-day week this week technically gave it a % move that was the highest for one calendar week since 1974. That is a crazy statistic.
The market spent most of today around +300, but who knows what the close will bring. Much attention is given to the Fed’s groundbreaking announcement.
The market ended up opening 200 points to the positive. But throughout the day it kept grinding higher and ended up closing up 780 points.
The market opened up near its high. Throughout the day, the market was up, then in the final 90 minutes gave up those gains, closing flat.
David is a frequent guest on CNBC, Bloomberg, and Fox Business and is a regular contributor to National Review and Forbes. David serves on the Board of Directors for the National Review Institute and is a founding Trustee for Pacifica Christian High School of Orange County.
He is the author of the books, Crisis of Responsibility: Our Cultural Addiction to Blame and How You Can Cure It (Post Hill Press), The Case for Dividend Growth: Investing in a Post-Crisis World (Post Hill Press) and his latest, Elizabeth Warren: How Her Presidency Would Destroy the Middle Class and the American Dream (2020).
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