OT - Dow plunges 1,175 - worst point decline in history

[Tony T]

NYSE Going to all electronic trading March 23rd.
(No need for traders on the floor anyway. My guess is that it will stay closed after the health crisis is over)

[cloudguy]

Loosing your shirt in the Market is for the little people:

https://www.huffpost.com/entry/senat...b6f5b7c5412d6c

[likebikes]

Originally Posted by seanile

I wrote myself a crash plan a couple months ago:

Graduated buy-in between 8% and 20% drops from all-time high. With 75% of my available cash, invest 20% @8%, 30% @13%, 50% @18%. Invest remaining 25% available cash and available Bonds at 20% and lower.

Until then im doing my usual per-paycheck investments

how's this plan working out so far?

[unterhausen]

Originally Posted by cloudguy

Loosing your shirt in the Market is for the little people:

https://www.huffpost.com/entry/senat...b6f5b7c5412d6c

yes, and it turns out another senator did the same thing

[adub]

Originally Posted by cloudguy

Loosing your shirt in the Market is for the little people:

https://www.huffpost.com/entry/senat...b6f5b7c5412d6c

How else is a politician to become wealthy?

[echappist]

Originally Posted by unterhausen

yes, and it turns out another senator did the same thing

And bought stocks in companies that specialize in telework infrastructure. Scumbags

Burr incidentally voted against the law that barred representatives and senators from engaging in insider trading

[93KgBike]

Originally Posted by 93KgBike

James 3:14-16

Originally Posted by Ozz

good one!

Cheers!

[verticaldoug]

Originally Posted by echappist

And bought stocks in companies that specialize in telework infrastructure. Scumbags

Burr incidentally voted against the law that barred representatives and senators from engaging in insider trading

Yes, the old adage, Watch what I do, not what I say.

[verticaldoug]

Originally Posted by MattTuck

Not saying YOU are a muppet. Just saying that there are a lot of not well understood risks right now, and while there might be opportunities, there is also a chance that the abuse is not close to done yet.

Mostly people are discussing equities. But there are lots of interesting opportunities out here.

Investment Grade debt had 35.6 billion in outflows from retail funds this week. It has just been whole sale selling with spreads blowing out in an illiquid market. All of a sudden, you get 5% YTM in <10 Yr ... looks good to me. If you want more risk, just go look at bank sub debt. Better risk reward than stock here

FED can't buy corporate paper, but ECB can. When they buy Euro issued debt by US corporations with businesses in Europe, it genreally helps those same corporate dollar spreads here.

[MattTuck]

Originally Posted by verticaldoug

Mostly people are discussing equities. But there are lots of interesting opportunities out here.

Investment Grade debt had 35.6 billion in outflows from retail funds this week. It has just been whole sale selling with spreads blowing out in an illiquid market. All of a sudden, you get 5% YTM in <10 Yr ... looks good to me. If you want more risk, just go look at bank sub debt. Better risk reward than stock here

FED can't buy corporate paper, but ECB can. When they buy Euro issued debt by US corporations with businesses in Europe, it genreally helps those same corporate dollar spreads here.

Noted on the investment grade debt. I've heard that from a number of friends in investment management... which makes me worried there is such a consensus that it is a good trade, however you may be right.

I do think we're in a time with very little slack in business operations. You are seeing all these firms draw down their revolver facilities. I think we're going to find that a number of firms are more fragile than we thought and could see a wave of defaults.

Interesting table

[Tony T]

Originally Posted by echappist

And bought stocks in companies that specialize in telework infrastructure. Scumbags

Burr incidentally voted against the law that barred representatives and senators from engaging in insider trading

I have confidence that the Senate Ethics Committee will look into this and give them a firm talking to.

.

[Tony T]

Stocks fall in another day of market turmoil, erasing the “Trump Bump.”

The S&P 500 fell about 4 percent, after rising earlier in the day, as the mood in financial markets grew increasingly dour.

It was another sharp turn in a market that has come to be characterized by dizzying changes in direction over the past month as investors have grappled with the barrage of developments.

Friday’s drop meant that the Dow Jones industrial average closed below where it stood on the day before Mr. Trump was inaugurated, erasing the so-called “Trump bump” that the president has cited as evidence of the success of his presidency. The S&P 500 isn’t far from that mark as well.

Stocks have collapsed about 35 percent in a month, wiping out trillions in value, and their decline on Friday came as the Federal Reserve made yet another move — this time, the backstopping of municipal money market mutual funds — to try to stabilize the economy.

Under the plan announced on Friday, the Fed will accept short-term, highly-rated municipal debt as loan collateral in one of its emergency programs. That will give banks an incentive to buy such debt from money market mutual funds, allowing them to offload the securities to come up with cash quickly, and it could keep the funds, popular investments among ordinary people and companies, from crashing as investors cash out.

[Tony T]

NYT: Senate Democrats Block Stimulus Package

The fate of a sweeping government rescue package to prop up an economy devastated by the coronavirus pandemic was in limbo on Sunday after Democrats blocked action in the Senate, objecting to an emerging deal that they said failed to adequately protect workers or impose strict enough restrictions on bailed-out businesses.

In a procedural vote that unfolded after three days of fast-paced negotiations to reach a bipartisan compromise, Senate Democrats registered their opposition to the bill even as top negotiators continued to struggle behind the scenes to strike a deal.

The 47-47 vote was a stunning setback for a package that was emerging as the largest economic stimulus measure in modern American history — now expected to cost $1.8 trillion or more. Several Republican senators were not in the chamber: Rand Paul of Kentucky, who announced that he had tested positive for the coronavirus earlier in the day; and two colleagues who protectively self-quarantined: Utah’s Senators, Mike Lee and Mitt Romney.

The White House and lawmakers in both parties were bracing for chaos in the markets on Monday morning should they fail to come to terms on the huge government rescue plan.

U.S. stock futures fell 5 percent on Sunday evening, their limit outside of regular market hours.

Republicans and Democrats, as well as President Trump, have agreed that the plan was crucial to cushioning the economic blow of the rapidly spreading disease, which has shut down entire industries, forced workers to stay at home and wreaked havoc in the global markets. It would send $1,200 direct payments to millions of Americans and make additional jobless benefits and aid available to states, and provide hundreds of billions of dollars for loans to businesses.

But as its outlines emerged on Sunday, Democrats denounced the package as a corporate giveaway that favored big business over workers and failed to ensure that bailed-out companies would not enrich themselves after receiving government aid. Democrats were particularly incensed at the inclusion of a provision to give the Federal Reserve access to $425 billion that could be leveraged for loans to broad groups of struggling companies, without restrictions on which businesses could receive it or how it could be used.

At a news conference on Sunday evening, the president would not commit to publicly saying that he would not accept federal relief money for his family business, The Trump Organization.

“I’ve learned, let’s just see what happens,” Mr. Trump said. “Because we have to save some of these great companies.”

[unterhausen]

that's a misleading headline if I ever saw one

[thwart]

Originally Posted by tony t

nyt: senate democrats block big business bailout package

Agree.

FIFY.