Coronavirus joins list of infamous market crashes, and it may not be over if policymakers don't act

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Investors indiscriminately moved money around multiple asset classes at a record pace over the past week’s tumult on Wall Street, signaling more damage to come if policymakers don’t take aggressive action.

Investors shifted massive amounts of money over the past week during the Wall Street tumult.

Bond funds saw the biggest outflows ever at $25.9 billion, while cash saw its biggest inflow at $139.6 billion, according to Bank of America Global Research. Stock funds lost $4.7 billion and the financial sector saw a record outflow of $3.3 billion. Gold saw its biggest inflow ever of $3.1 billion, while energy took in $1.3 billion, its biggest haul since December 2015.

The good news is that the moves helped trigger a contrarian "buy" signal on Bank of America's "Bull & Bear Indicator.", which is nearly 30% off its record highs, then things could still get worse.

Mnuchin said tariff relief is not on the agenda at this time, though he said the administration is considering help to select industries.

 

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Kiss your parents and grandparents goodbye. Maybe the government will give more corporate tax cuts so it still won’t do anything to stop the exponential spread.

Why isn’t anyone telling people not to touch their 401Ks? It will be disastrous for most to miss the first few days of recovery, whenever that happens.

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Market turmoil sparked by coronavirus fears is worse than financial crisis, James Bianco says'It's incredible to think that a trillion dollars can't get these markets moving,' James Bianco says (via TradingNation) TradingNation Because it’s not “free” money and it signals panic and drastic measures. TradingNation Its the sentiment bro. $10trillion might move the needle though. TradingNation 1000 dollars to each person in the United States a month is about 330 billion.
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