11-11-2020, 12:51 AM
As true as that is LP, financial markets still like certainty irrespective of whether or not some industries can make money from instability.
The lack of clear direction is a bigger concern than anything else, because the market is all about confidence. Hence why Vaccine news causes a lot of stocks that are still having a lot headwinds rise exponentially. Did you see what happened to energy and travel stocks particularly yesterday? Surged by a ridiculous amount on the assertion we have a vaccine with a 90% success rate, with no real data to back it up.
FLT rose 16% on open. Flight centre. A company that released a capital note scheme to fill its coffers with money so they can remain liquid, whilst only making 12% of previous profits, which who knows what that does to its balance sheet. Why? because we "might" have a vaccine which means that they can finally start planning at returning to profit.
THAT is an example of what confidence can do to financial markets and what I am talking about.
The lack of clear direction is a bigger concern than anything else, because the market is all about confidence. Hence why Vaccine news causes a lot of stocks that are still having a lot headwinds rise exponentially. Did you see what happened to energy and travel stocks particularly yesterday? Surged by a ridiculous amount on the assertion we have a vaccine with a 90% success rate, with no real data to back it up.
FLT rose 16% on open. Flight centre. A company that released a capital note scheme to fill its coffers with money so they can remain liquid, whilst only making 12% of previous profits, which who knows what that does to its balance sheet. Why? because we "might" have a vaccine which means that they can finally start planning at returning to profit.
THAT is an example of what confidence can do to financial markets and what I am talking about.
"everything you know is wrong"
Paul Hewson
Paul Hewson