Super-EU state or bust!
It will be a while before the true cost of the blanket lockdown across most of Europe is known. We do know however that countries with higher Covid-19 fatality rates have typically seen their equity indices underperform by ca. -7% for each extra 100 fatalities per million above Denmark’s rate (see chart below).
All the (Investing) World Needs is a Fed Meeting
The Fed’s Open Market Committee is holding today and tomorrow one of its 8 regular annual sessions. As the graph below shows, the mere fact that the FOMC meets is normally enough to boost equity returns. If only getting more protective masks was that easy!
Less unknowns on the pandemic, more unknowns on everything else
Early March, we reported on the staggeringly wide range of possible outcomes from the COVID-19 outbreak due to the uncertainty level surrounding the contagiousness (R0), lethality (CFR) and severity (SCR) of the virus.
The Big Short Vol
The abrupt and uninterrupted nature of the recent freefall in global growth expectations (see iGDP, our GDP index, momentum graph below) is starting to make 2008 look almost benign. For instance, our global financial stress index just spiked 16 standard deviations away from its 15-year mean, twice the 2008 peak level, even as central banks around the world have adopted a no-holds barred approach to prop up the reserves of financial institutions.
Key Stocks to Watch In Your Region And Sector (For Now)
Under the circumstances, the stocks surfaced by Butterwire as offering the best prospects of material future out/under-performance have dramatically evolved over the past few weeks and will certainly do so again when and after global growth expectations bottom out (and a supply crunch meets a wall of money).
For now, we have taken this opportunity to create a rapid digest of Butterwire’s latest insights from its Stock Explorer and from its daily analysis of the fast-evolving fundamentals of 6,000 primary equities