Ep. 328 – Manic Monday

The Kapital News
The Kapital News
Ep. 328 - Manic Monday
/

We asked the question last week is, “Reality Sinking In?” And we noted that time will tell, but we have to look out for Monday and how the markets perform. Well Monday came and boy, was it manic. Global equities shed 3% and some even more than that on the major indexes. So is reality sinking in and which reality? The reality of a melt-up coming to an end? The realization of record-breaking valuations? The coming to terms with COVID-19? Or some combination thereof? It’s probably a combination, but the point of the matter is that the global economy and its markets are balancing on a blade of grass and it’s not going to make much to knock it off its perch. Too much debt and too much interventions from federal governments and central banks is coming home to roost. Will this all take place in a day’s time? No. It’s a process, but we may well be in the midst of this long overdue correction to fair value. But make no mistake, if history is any guide, this could simply be a pullback and then off to new highs. So long as the inmates are running the asylum, anything can happen. Yeah we have the COVID-19 spreading to some 36 countries, but don’t forget about the locusts too. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Coronavirus #Recession #COVID19 #EndTheFed #Gold #Silver #Oil #Bonds #Politics

Join the discussion...