E Market Briefing For Monday, May 25

There's even a generational gap of behavior here, with in some cases older Americans willing to venture out, whereas younger families, understandably so, are more protective knowing what can happen if any family member is hobbled by Covid-19. That too varies regionally; as media correctly shows in this instance.



The importance of this, besides of course directly relating to immediate and urgent concerns about M&M experiences (morbidity & mortality), points out the potentially false assumptions about the Covid-19's virulence dissipating during the Summer months. I'm in Florida, the temperature is in the 90's; at the same time case levels in Greater Miami have been rising not settling; in a pattern that is not the same time as just from greater testing; which means hospitalization rates are increasing again. Before the weekend began.

Objectively that means no curves have been truly flattened; medical expert advisors have understandably been cajoled (or convinced) that re-opening is essential now (I think it is, but responsibly; and messages from Washington we'd wish were wiser at times; but they tend to be what we want to hear; not need to hear from an epidemiological standpoint; although again important; nobody is sparing funding to get drug and vaccine studies ramped faster).


In sum: this matters to everyone; and certainly to the stock market. Friday, after the close, we hear not just about Hertz filing for bankruptcy (expected for some time) but that Gilead's drug remdesivir is not so effective alone; and that oxygen and other treatments are or may have to be combined.  

China is playing clever poker with its emphasis on complying with their US Trade Agreement, while terrorizing or provoking Hong Kong into improper and illegal submission to their mainland laws. Previously President Trump might have intended shifting focus a bit to China; now China transgresses enough to really justify it even more; creating a diplomatic standoff. Today (Saturday) China talked about abandoning 'central planning'. We look into that; because it has incredible implications for their society and 'realpolitik' as well as perhaps an admission of the fiasco they created with planned big cities; and compelling 'good' citizens to invest in vacant 'ghost' cities etc. 

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Chee Hin Teh 1 year ago Member's comment

Many thanks. Well Said. James