San Diego Union-Tribune (Sunday)
EXECUTIVES
YES
I think investors were just waiting for an “event” that could burst the bubble and maybe even relieve the stress of playing the game of how much higher can the market go without the customary right sizing. This week we are now seeing that in the overall big picture of the economy, the sell-off was overreacting and within the next few weeks we will get back to a new normal in the stock market.
YES
The U.S. stock market has been due for a correction and it was inevitable even without the coronavirus. And it’s not just the virus that is fueling stock market volatility. The 2020 elections, increased bond prices, continued geopolitical issues, and fears of a future recession have added to the uncertainty. Once the coronavirus anxieties subside, we will see if the market remains resilient or if a bear market is on the horizon.
YES
The stock market’s 10-year run has certainly been bolstered by some unsustainable dynamics: 1) Large stock buy-backs (corporations using excess cash to purchase their own shares, reducing those available to the market and increasing prices), 2) loose monetary policy (interest rates held astonishingly low), 3) de-regulatory and protectionist policies (trading our environment, public health, consumer financial protections against short-term, privatized gains).
NO
The stock market was overvalued before the “dot.com” and housing bubbles of 2000 and 2008. Today’s stock market was near an all-time high due to a combination of consumer confidence, employment and wage growth, low interest rates and an election year bump. The only thing that could take down this market would be an unrelated event like coronavirus. It will be over in 30 days and everyone will be happy again.