re: #206 FFL (GOP Delenda Est)

The S&P ran up 17 percent since the first of October because everyone had turned bullish. We were overdue for a correction, and the corona virus scare only amplified it.

The Fed and the other international rate managers will step in and cut rates, though some nations already are at or below zero. I heard one money manager ask a great question, though: “How does a rate cut get people to fly on airplanes or re-open schools?”

As for P/E ratios, there will have to be some re-assessments on earnings, particularly after Goldman Sachs came out with a note stating there will be zero earnings growth for U.S. companies this year. We’ll get a bounce back simply because stocks are so oversold. But things are going to be really choppy after that, given the corona virus situation and the increased likelihood of a global recession.