First we had Trumps Friday fiscal stimulus and today the 100 BP Fed cut. However, all the market could do was go down?
Obviously there is nothing left in the armoury to combat the accelerating effects of the Wuhan Virus on the US and Global economy. An impact so bad that it will drive a global depression.
This failure to save the longs, amounts to the death of the Fed and US Government, that drove a decade long rally. As Italy found out last week, when the new head of the ECB said they would not support widening spreads. The age of price supporting intervention is now over and the markets have been cut loose to exact the maximum pain on the current longs.
This coupled with the fragile national American psychology, reeling from a pandemic on home soil with millions of deaths on the horizon.
Thus we expect to see an equity rout of accelerating dimensions tin the next few weeks of 25% plus.
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