Category Archives: stock market

Hydroxychloroquine, Moderna Vaccine and Trump

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Hydroxychloroquine is President Trump’s drug of choice at the moment. It’s an anti-malarial drug that some think has an off-label use against Covid-19. On Monday Trump announced that he personally takes the drug. He told the press, “I was just waiting to see your eyes light up when I said this.”

There are risks, its effectiveness against Covid-19 is unproven but he’s taking the drug under the supervision of his physician.

It’s not like he’s mainlining Lysol. Still, the expected media freak-out ensued.

Pelosi offers second opinion on Trump Hydroxychloroquine Therapy

The Speaker of the House recommended against the therapy and diagnosed Trump as morbidly obese. The president countered that she’s a sick woman with a lot of mental problems.

Earlier Monday, Moderna announced that phase one testing of its Covid-19 vaccine showed positive results. So positive that the Dow shot up 900 points. But then Trump stepped the good news.

Race Against Time, Virus vs. Savings

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It’s a race against time. Can the virus be spent before your savings?

701,000 American jobs were lost in March and the unemployment rate rose from 3.5% to 4.4% in one month according to the WSJ.

Meanwhile, The Guardian says about 35 companies are working on a vaccine and Moderna is about to begin human testing. And “many many‘ groups are working on immunity-giving antibody tests that provide results in minutes.

Economy Not Sheltering in Place

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The economy isn’t sheltering in place. It’s heading down. Fast.

Goldman Sachs forecasts 15% unemployment and a 34% decline in GDP in the second quarter. And the stock market just finished its worst quarter since 2008.

Goldman Sachs is still predicting a “V-shape” recovery, however, meaning the steep drop-off will lead to a bigger bounce of 19 percent in the third quarter.

The Hill

Economy Not Sheltering

The election is seven months away. Can Trump pull the economy out of its Corona nose dive by then?

Scott Brennan, an Iowa Democratic National Committee member and a former state party chairman, said, “If the economy pops back … it’s hard to know what people are going to think.”

Politico

 

Two Trillion Dollar Stimulus Brings Back Bull, For Now

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The Senate passed a two trillion dollar stimulus bill Wednesday night. And the Dow lurched forward 6.4% on Thursday. And that followed an 11% bump from the day before. But the 401k party was over by Friday and it was still down over 20% for the year.

Senate Stock Market Tycoons

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White House and Senate agreed to a $2 trillion stimulus deal for the economy. And the economy likes it. The Dow shot up 11% for its best day since 1933.

Speaking of stocks and Senators, some senators dumped stocks just before Corona virus market meltdown.

Senate Stock Market Tycoons

Here’s Professor Jonathan Turley writing in The Hill:

Senators Richard Burr, Kelly Loeffler, James Inhofe, and Dianne Feinstein together are responsible for as much as $11 million in recent stock sales. It turns out that many lawmakers become market investment geniuses after they enter Congress. A University of Memphis study found that 75 percent of randomly selected members had made “stock transactions that directly coincided with legislative activity.” A Georgia State University study noted that, from 1993 to 1998, senators beat the stock market by 12 points with their portfolios and outperformed “corporate insiders” by 8 points.