This May the market's direction depends on successfully reopening the U.S. economy, a daunting challenge.A cyclist passes a boarded up store during the coronavirus pandemic on April 28, 2020 in New York City.April's 12% rally in the S&P 500 has been based largely on hopes for a reopening of the U.S. economy, but if you want to know how fragile the reopening may be, try talking to veteran restaurant owner Peter Dissin.
He figures his 60-seat restaurant will only be able to handle 30 — half his capacity — under new social distancing rules. Would that work?He is planning to go to his landlord to ask that the rent be changed to a percentage of his revenue, rather than a flat rent as it is now. "If that doesn't happen, I'm out of business, even if we reopen."
"In our opinion, the next month is a wild card and critical for the future direction of [second half] earnings expectations," Nick Raich, who covers corporate earnings at the Earnings Scout, wrote in a note to clients. "If business re-openings go well, as we anticipate, the drop in EPS estimate cuts will most certainly abate. If not, the worst of the cuts may not be over."
He acknowledges that the biggest risk is a wave of reinfections that forces states to close once again, but he insists the bigger surprise is simply that the reopening is a bit of a bust.
Also, herds of unicorns.
And don't forget the money printing and bailouts.
This virus could be around for two years.
USA dont train this, problems for months
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Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »