By Brandon M. Suffel Contributor for Breakfast at Midnight April 9, 2020
Hey everyone, thanks for being with us these last nine days, it’s been awesome! I’m here to let you know we will be back NEXT Tuesday 14 April after Easter Monday. I hope you have a Good Friday and, a Happy Easter!
Brandon M. Suffel
Don’t forget we have a Twitter! @SuffelStocks
The stock market this week had a bounce. The coronavirus fears have not stopped stocks from experiencing substantial gains. There’s chatter the US is close to experiencing it’s peak in cases however most states are taking extra precautions by extending social distancing to 30 April – like Michigan. That being the case, how much longer can the US economy sustain losses to the workforce? According Mark Hulbert on MarketWatch, stocks will again revisit their lows. Mr. Hulbert also adds, Since the Dow Jones Industrial Average DJIA, +1.22% was created in the late 1800s, there have been 38 other occasions where it rallied just as much (or more) in just as short a period — and all of them occurred during the Great Depression. Because of this fact, how can investors be so sure similar circumstances occur in the coronavirus bear market today? I’m not advocating or vouching it’s inevitable, but if we cannot find a probable solution quickly to the virus – then it’s in the equation. Who knows what our new lows could look like – or our sudden highs. Is it time to decide whether to be a bear or a bull heading into next week when trading resumes on 13 April?
Book a flight if you can
Plane ticket prices have been low – and I mean LOW. No one is traveling. No one has the right destination in mind. Is there really a need to travel anyways? Maybe not; but if you wanted to travel, you are bound to avoid long security lines, enjoy quick service, few to none crowds, and an empty seat or two next to you on your flight. That is, if you you are traveling within your nation… As for airline stocks they performed awfully well today, let’s see how they did.
United Continental Holdings Inc. $UAL saw a sharp increase of (+22.76%), American Airlines Group $AAL shares bounced (+15.93%), Southwest Airlines Co. $LUV (+10.52%), and Delta Air Lines Inc. $DAL shares rose (+8.81%), all today. This could be due to President 45 of the United States making a sudden suggestion airlines could receive grant details this weekend; sources say 275 applied – according to newsfilterio. If this news fits well into airline investors and their portfolios – airline stocks could be seeing more gains like today’s. Depending on how long air travel is still considered paranoiac, airline’s will need to think of plausible solutions to make up for their losses during this period. And if the losses faced since March continue to brigade their way through the market – even though we’ve been having a bullish week – again, how are we so sure those were the lowest of the lows? Sheesh, I’m going to need a vacation to Hawaii…