More stimulus checks from Trump are needed to prevent another stock market plunge: strategist

Editor-at-Large

After a rally in stocks since late March fueled on pure hope around the pace of economic recovery post the worst of the COVID-19 pandemic, the markets may be starting to cry out for their latest pound of flesh to keep stocks moving higher.
And the needed flesh will probably not come in the form of negative interest rates from Federal Reserve chief Jerome Powell (which he promptly downplayed this week). Nope. So what the market — which has been hit with a fresh round of profit-taking this past week — probably wants is another round of stimulus checks from the Trump administration mailed straight to the mailboxes of struggling U.S. consumers in the hopes they go out and spend. Many strategists believe the first round of checks — which are still being shipped out — have either gone into savings or used to pay bills.
Read more

Comments

Post a Comment

Popular posts from this blog

US Housing Starts, Permits Plunge To 5 Year Lows

Image
Having already collapsed in March, analysts expected further terrible weakness in both housing starts and building permits in April as the impact of lockdowns really escalated, and the data did indeed come in ugly. Housing Starts fell 30.2% MoM  in April (worse than the 26.0% drop expected and accelerating considerably from the 22.3% drop in March). This is a record drop. Building Permits fell 20.8% MoM  in April (better than the 25.9% expected) Source: Bloomberg Read more
Read more

Volkswagen Goes On Billion Dollar EV Investment Spree In China To Compete Directly With Tesla

Image
"Buy when there's blood in the streets..." This is likely the adage Volkswagen had in mind during the collapse of China's car market over the last quarter, as a result of both an auto market mired in pre-virus recession, and the effects of the pandemic and its ensuing lockdowns.  Volkswagen, eager to gain ground on Tesla in the EV space globally, went on an acquisition/investment spree, according to  Reuters .  The company is now sealing "its largest investments deals with Chinese EV firms".  Volkswagen will buy 50% of Anhui Jianghuai Automobile Group Holding , the parent of EV partner JAC Motors for $491 million and will become the largest shareholder of EV battery maker Guoxuan High-tech Co Ltd.  Anhui Jianghuai is fully state owned and has a 25.23% stake in JAC, which has a market value of $1.84 billion. Volkswagen plans to deploy fresh capital with the JV in hopes of building capacity to manufacture with its MEB platform - the compan...
Read more