Stock Markets, Tariffs, Coronavirus

[JohnT]

@octopus

Unlike those who advocate for a nanny state I believe you have the choice to manage your life as you wish. My advice is still much better than those who hyperventilate every time a headline has bold letters and an exclamation point.

So, your only reassurance that you are correct is, not one, but two generalized insults?

Here are my citations that buying in this market is a losers game:

jeroen blokland

The Big Short

Cost of US corporate default protection soars

… to that last…

Investors are racing to protect themselves from the risk of corporate defaults as uncertainty intensifies over the economic implications of coronavirus, sending the cost of credit insurance to levels not seen in the US for eight years.

With credit markets reeling from the widening outbreak and an oil price war that has raised questions over the health of energy companies, trading in credit default swaps has been elevated and prices have soared.

An index of credit default swaps on investment-grade companies on Thursday hit 140 basis points, its highest since December 2011, while an equivalent index for CDS on junk-rated companies hit 688 basis points, its highest since June 2012, according to data from IHS Markit.

…

Credit default swaps are instruments that pay compensation if a borrower defaults, and IHS Markit’s CDX indices include CDS on dozens of companies. Borrowers included in the investment-grade index include Boeing, whose airline customers have borne the brunt of travel bans, and Disney, which shut its Los Angeles theme park on Thursday. The junk bond CDS index includes oil producer Murphy Oil, drilling contractor Transocean, and Whiting Petroleum, an oil exploration company.