COVID-19, The Fed, and Corporate Zombification

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Real VisionJune 25, 2020
David Rosenberg of Rosenberg Research joins Real Vision managing editor, Ed Harrison, to break down his view of the economy, financial markets, and their direction over the next six to eighteen months. Rosenberg notes the success of working from home and the negative implications it has for commercial real estate – both residential and office. He points to internet infrastructure, consumer staples, healthcare, and big tech as sectors that are poised to do well over the next year and predicts that elevated personal savings rates, a reduction in capital expenditures, and a credit downgrade cycle will contribute to weaker GDP numbers for 2020. He argues that the Fed has enabled the zombification of the corporate sector though artificially low interest rates, and Rosenberg and Harrison consider whether the actions of the Fed could trigger insolvency and liquidity crises by suppressing price discovery in the market. Rosenberg also touches on Japan, Canada, and gold in the context of COVID-19 and monetary policy responses to the pandemic. Filmed on June 23, 2020. To register for Rosenberg Research’s free trial, visit https://www.rosenbergresearch.com/clients/register.
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Real VisionJuly 14, 2020
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We often categorize the epochs of finance as “post-XYZ” crisis as the changes that take place in market psychology, monetary policy, and politics upend our previously held truths, and experienced market participants have to learn the new rules of the game. Christophe Ollari, founder of Ollari Consulting, believes we are entering into a new post-COVID era, marked by different forms of monetary policy (ie., yield curve control or direct support of equity markets), suppressed bond market volatility, and an equity market that must act accordingly. Ollari also touches on the much-discussed “disconnect” between equities and the economy and argues that the lagging Russell 2000 index is a perfect example of why markets are neither disconnected from the facts nor pricing in a V-shaped recovery. Filmed on July 9, 2020.
Real VisionJuly 13, 2020
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Senior editor Ash Bennington hosts Ed Harrison for a conversation about life and markets during coronavirus. Using Tesla as a jumping off point, they take an existentialist turn and explore what might bring people to speculate on a stock that, by all traditional metrics, is extremely overvalued. Ed proffers that people who take a gamble on Tesla and other retail favorites do so out of a sense of desperation in order to feel a sense of control, at a time when they feel powerless. Ash provides additional color on Ed’s theory by analyzing the impact of fiscal stimulus. Ed and Ash also they frame their thinking through today's interview with Mark Blyth and Eric Lonergan. In the intro, Jack Farley explores the coming "fiscal cliff" in the U.S., and puts Tesla's extreme price action in context.
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Angrynomics: Twilight of the Technocrats
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