Last Friday 3.28 million was the most important number. It was a new record for US unemployment claims. Dwarfing the previous high of 695,000 claims back in 1982. The first significant statistical indicator of just how bad this ‘corona’ recession will be...
We need to consider what impact the restriction of human movement and economic shutdowns really has. That’s because it’s pretty likely that again in our lifetime, we’ll have to deal with another pandemic. This isn’t the first one we’ve had to deal with.
We suggested at the start of the year that Aussie lithium miners were approaching a bottom. But, COVID-19 chaos roiled markets and pushed the share prices of a number of Aussie lithium miners further south. This time, we look at what’s happening in the lithium space...
As Vern notes, there’s fundamental economic change afoot. How this all shakes out is going to have immediate impact on global industry, but it’s also going to drastically change the future that we thought was coming.
As we’re currently seeing, governments and central banks around the world are undertaking a giant experiment. In the words of our Prime Minister, they’re trying to ‘pause’ the economy. Pumping billions or even trillions of dollars into industries to survive the collapse in demand.
Is the economy so royally stuffed that the six-month ‘Job Keeper’ hiatus is merely a time bomb set to explode later on?
Tobias Adrian says: ‘Cash, the physical object, is now potentially contagious but cash, the financial asset, is still a safe option.’ Indeed, China started confiscating and sterilising the physical object in question.
As we’ve been warning, the pain is set to come through unemployment. Which we’re now starting to see. Next step will be recession. Expect that pretty soon when the economy contracts officially. And then there will be corporate failures.
The impact that has on economic output is devastating. And while the markets have just jumped, the real economic pain of all this has not even come close to hitting as it should.
It’s an ASX stock market meltdown unlike anything we’ve seen in decades. A sell-off that is as extraordinary as it is frightening. However, it is also an opportunity. We haven’t seen stocks this cheap for a long time...