Ep. 356 – No Earning’s, Who Cares?

The Kapital News
The Kapital News
Ep. 356 - No Earning's, Who Cares?

As we enter corporate earning’s season, we’re already beginning to see the effects of an ailing economy coupled with COVID19. Many of the banks are reporting numbers that are through the floor – this is no surprise. They are also readying themselves for a wave of defaults across the spectrum of financial products. Whether that’s mortgages, autos, credit cards, you name it. Another interesting data point to note is that nearly 17% of S&P 1500 companies can now be classified as a “zombie” company. This means that their interest expenses exceed their cash flows. Now perhaps you understand the title of today’s podcast? This is especially true against the backdrop of one of the largest rallies in market history over the last few weeks. So strong, you have many in the media and Wall Street, already declaring that the bear market is over and that everything is fine and off to to the races we go. This is pure lunacy. But this is also a reflection of the market mentality and of the times. So many have been conditioned over the last decade that easy money, printed at will, can solve any problem. Well, we believe that Junior is about to find out the hard way that money printing is not a panacea. As such, we expect the markets to sell off significantly over the coming years that will be reminiscent of the NASDAQ in 1999-2001 and the DOW in 1929 through the early 1930’s. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #Bailouts #Debt #USA #Oil #Gold #Liberty

Join the discussion...