On Thursday the huge market rally continued with the S&P 500 up 6.2% and although Toronto was up only 1.8%.
It seems the market has decided that the gargantuan U.S. stimulus package will take care of much of the revenue losses associated with the partial; economic shutdown. Futures are down modestly tonight however.
Even the companies themselves probably have little idea of how much cash they will receive and whether some will be forgivable loans.
Again, it seems that the market is hopeful of various treatments and efforts that will hopefully avoid hospitals getting over whelmed. Some argue that the death percentage will be fr lower than , for example, the 4.0% reported in China. And certainly it is possible that there were vastly more cases in China that were never tested for which, if true, would mean the death rate was well under 4.0%.
So far, the market has taken little notice of the fact that the U.S. (with a third the population) now has more Covid-19 cases than China as of today. And there is certainly no sign of any slow-down in the case counts in the U.S.
I certainly continue to have a lot of difficulty predicting where the market is headed.
Starting tomorrow I will update the comments int eh table as to how each company might be affected by the c economic shut down and slow down. The part that is even more difficult or impossible to know is to what extent the various stimulus packages will offset lost revenue.