By Chris Becker
It’s crunch time for stock markets around the world this week as its plain to see that the combined efforts of central banks and fiscal stimulus has had almost no impact on the reality that is a major recession forthcoming in 2020. As the US leads the world in its criminally negligent handling of the COVID-19 pandemic, so too it will lead the world’s risk complex down as stock markets rollover, credit and corporate bond markets implode and the USD dives against, well everything. Friday night saw a big inversion in risk on Wall Street, with major stock selloffs after what looked like a sustainable rally. The USD fell against all the majors, while the market most aren’t watching – oil – dropped 5% to match its previous lows, having made no recovery at all and ready to crash another 30-50% as demand is about to evaporate.
Keep your powder dry this week folks. For those of you with some spare powder, BBOZ/BEAR, BBUS, QAU ETFs are calling…