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In reply to the discussion: So what happened with the DOW today −457.21 [View all]Jim__
(14,063 posts)8. U.S. Stocks Slump After Fauci, Fed Set Somber Tone: Markets Wrap
From yahoo finance:
(Bloomberg) -- Stocks tumbled after a U.S. health official warned against a premature reopening of the economy and as traders assessed a dire outlook from Federal Reserve regional chiefs. Treasuries and the dollar climbed.
The S&P 500 extended losses as Anthony Fauci, the nations top infectious disease official, said states reopening too quickly could set you back on the road on trying to get economic recovery. Meanwhile, some central bank officials said the virus outbreak and a partial shutdown would risk massive bankruptcies that could create a lasting scar. The Fed could curtail Wall Street banks ability to pay dividends by cranking up the amount of capital they need to maintain due to the coronavirus crisis, Governor Randal Quarles said Tuesday.
You will get business failures on a grand scale and you will be taking risks that you would go into depression if shutdowns persist, Federal Reserve Bank of St. Louis President James Bullard said in a video speech from that city Tuesday. Minneapolis Fed President Neel Kashkari warned of a gradual, muted recovery from the outbreak, while Dallas Fed President Robert Kaplan said the economy will need more fiscal stimulus if the jobless rate continues to rise.
The disastrous fallout of business closures and stay-at-home orders caused an unprecedented 20.5 million job losses in April, tripling the unemployment rate to 14.7%, the highest since the Great Depression era of the 1930s. A key measure of U.S. consumer prices declined last month by the most on record. A sustained trend of declining prices would spur worries about deflation, exacerbating concern that the recovery from the deep economic downturn will be very slow.
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The S&P 500 extended losses as Anthony Fauci, the nations top infectious disease official, said states reopening too quickly could set you back on the road on trying to get economic recovery. Meanwhile, some central bank officials said the virus outbreak and a partial shutdown would risk massive bankruptcies that could create a lasting scar. The Fed could curtail Wall Street banks ability to pay dividends by cranking up the amount of capital they need to maintain due to the coronavirus crisis, Governor Randal Quarles said Tuesday.
You will get business failures on a grand scale and you will be taking risks that you would go into depression if shutdowns persist, Federal Reserve Bank of St. Louis President James Bullard said in a video speech from that city Tuesday. Minneapolis Fed President Neel Kashkari warned of a gradual, muted recovery from the outbreak, while Dallas Fed President Robert Kaplan said the economy will need more fiscal stimulus if the jobless rate continues to rise.
The disastrous fallout of business closures and stay-at-home orders caused an unprecedented 20.5 million job losses in April, tripling the unemployment rate to 14.7%, the highest since the Great Depression era of the 1930s. A key measure of U.S. consumer prices declined last month by the most on record. A sustained trend of declining prices would spur worries about deflation, exacerbating concern that the recovery from the deep economic downturn will be very slow.
more ...
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It's bad, but if you're in the market, you should know not to watch daily ups and downs
Bucky
May 2020
#5
Thanks for the graph. Here's S&P 500 from 1928 on a logarithmic scale for a different kind of view
progree
May 2020
#17
Actually with reinvested dividends it took S&P 500 16 years to recover from Great Depression
progree
May 2020
#31
You make sound points. The main issue is how quickly a person will need retirement money and how
Blue_true
May 2020
#35
Actually, I had in mind the people who need their retirement money, not well-off people
progree
May 2020
#38
If a person needs much more than 4%/year withdrawal, all simulations show they are screwed (will
progree
May 2020
#40
I struggle a lot with which view is the more distorted one - linear or logarithmic
progree
May 2020
#32
It's the logarithmic scale that allows dips, or growth, to look the same whatever the date
muriel_volestrangler
May 2020
#33
I think the peak to trough drop in the Dow index was 89%, meaning $100 became $11, or
progree
May 2020
#34
***FAUCI !!! *** I've been saying for nearly 3 weeks Trump and ManureChin have been lying about
uponit7771
May 2020
#12
It might be more about several of the early reopening states ticking up in cases?
herding cats
May 2020
#29
The market will remain volatile until the COVID numbers drop or a promising drug or vaccine drops
Algernon Moncrieff
May 2020
#20