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📰 Conscious Capital Insights for 06/05/2020
We are a California-based registered investment advisor and thought leader, updating you on this week’s top investment news, research and market performance.
Uncertainty has seldom been higher. Oddly, neither has the stock market. (GMO)
The current P/E on the U.S. market is in the top 10% of its history. The U.S. economy in contrast is in its worst 10%, perhaps even the worst 1%. In addition, everything is uncertain, perhaps to a unique degree… This is apparently one of the most impressive mismatches in history.
Fed flirting with moral hazard to keep markets open. (Bloomberg)
Federal Reserve action to keep credit flowing rewards risky behavior and the remedy may be tougher regulation in the future, said former New York Federal Reserve Bank President William Dudley. “People who have high-yield debt that’s outstanding, a lot of times that’s happened by choice,” he told Bloomberg. “So for the Federal Reserve to intervene and support those asset prices, is basically creating a little bit of moral hazard in the sense you’re encouraging people to take on more debt.”
The mechanics of the economic flywheel and pandemic investment outcomes. (Bridgewater Associates)
In conversation with Senior Portfolio Strategist Jim Haskel, Co-CIO Bob Prince examines the forces COVID-19 unleashed on the economy, the measures that will be required to restart the flywheel between income and spending, and the range of ways the shock is impacting different countries, sectors, and companies.
Weekly Price Performance Heatmap (Finviz)
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