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Monday, March 16, 2020

Why the selloff after Fed’s emergency action?

“It’s basically using up all [the Fed’s] ammunition within a three-week span. And there’s nothing left,” said Terence Wong, CEO of Azure Capital.
“The policy response is so strong, it’s likely to spook investors,” added Michael O’Rourke, chief market strategist at JonesTrading.
“The reason why markets are selling off right now is we have a ton of information about the virus, but a very, very little amount of understanding,” declared Anthony Scaramucci of Skybridge Capital. “So, what’s happening right now (is) we’re starting to price in the reduction in earnings for 2020 and the possibility now of a recession.”
Many investors also want to see coronavirus cases peaking and falling in the U.S. before it is safe to take on risk and buy equities again.
https://seekingalpha.com/news/3551875-why-selloff-after-feds-emergency-action

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