So here we are, 7 weeks after the share market hit historic highs. and the share market is getting all excited about flattening the curve, and a pile of stimulus packages. The Dow is down just 20% off its historic highs. Personally there must be a lot of cup half full people, snorting a line before they start trading in the morning. Everybody everywhere is stopping unnecessary spend. We are hanging on to our nuts, to last the long COVID-19 Winter. and we are doing it on a scale not seen since the great depression. While sitting at home, I am driving 400km a week less, I am not eating out or doing any form of entertainment. I go to the shops to buy staple foods and cook at home. I fix things that are broken, which when I am busy I would have just bought a new one. I am doing jobs around the house that I would have outsourced in the past. My work has dropped off 70% and without being innovative and finding new markets, layoffs are inevitable.. As these little things flow down the line there is a cascading effect. Just think how shares are still valued to day, current PE Values, and what the share price would be if shares traded at a PE of 10 and good companies still traded profitably but were only half as profitable.... While countries flatten the curve, and the medical emergency is diminished, the financial emergency will take 6-12 months to really show its ugly head... Weather forecast... Torrential Rain of Dead Cats causing severe risk of Dow Landslide. Graziers Warning: Get you bulls under cover, avoid the bear traps created by bots, day traders, graph watchers, tea leaf readers and millennial crack heads. We have a lot further to fall yet..
