Fortunately or sadly capacity isn't the issue these days as much as too little demand for global capacity. This Corona downturn will crimp demand even more ending is persistently high unemployment and a lack of income. It is the bond holders who should be worried about when their bonds renew they will continue to generate even less revenue. That is why there is still a lot of demand for stocks which are becoming the only hope of generating a decent return on your assets.

Thus few are worried about supply. However, the author is right in that if this persists too long productive capacity may be permanently lost globally leading to even worse unemployment and lack of demand later down the line. In such a case, property collapses will likely start another crisis.

There are other stocks too like Intuitive Surgical as well, but you are correct it would dash the whole market if FANGS fall too badly. Unfortunately, not all FANGS are like Google with Netflix rising strongly but which runs massively cash flow negative. Anyways, growth and sustainable cash flow after Corona is the important key to focus on.

This is the case for those seeking dividend yield without care about the debt on the balance sheet and long term viability of cash flow. Sadly, many elderly have been advised by bad brokers to pile into dividend yielding stocks and mutual funds to make personal profit at the expense of their clients.

True. The big issue is we will have to watch foreign holdings of our government debt. If it drops precipitously then it's time to worry.

There are a few we know will return to profitability. Google is the most obvious example.

This is not a good sign, however, can anyone be surprised given no attempt at balancing things, asking the Federal Reserve to increase their holdings, and Trump going on a new trade etc. war with China. It is true the market is where it is because there is not much else to put your money these days, however, if the US has trouble with government bond issues later that will affect everything. The US can't afford to finance its own debt levels alone.

the world is in recession whether anyone wants to admit it or not is another matter. One should rotate into companies set to dominate after Covid. Unfortunately most small companies and players will be obliterated and with it a lot of the middle class. Unemployment in to 10% range will likely continue and things will be bad unless countries justify a way for them to cover healthcare and afford daily living.

Indeed the bailout of companies always mis-allocates assets. There is no reason to support businesses which real demand will not meet supply after the return to normal. Doing so only prolongs the agony for strong businesses and the industry. The airline business should have consolidated to companies that can live without bailouts decades ago but still survives as is leading to low profitability, bad service, and poor management. Even worse they run business poorly because they are rewarded by the government bailouts for being highly debt ridden, having poor business structures including excessive executive pay because they want to show they need bailout money every time there is a downturn, and they leverage buyout competitors because no big airline wants another potential competitor who can qualify and potentially steal a portion of bailout money in a downturn. This is similar in the banking sector.

Even worse is industries that should almost completely be wiped out like the cruise ship industry which is getting bailout money. Rather than making American business stronger, this behavior is making it weaker. That said, small businesses that are well run are not getting the bailout funds they need.

It is much better for companies to survive off of consumer needs and demands and if anything, bailouts should go to support consumers through these tough times via monthly checks, government support with healthcare, etc. This way at least the market is still determining allocation of resources through real consumption even if the consumers wealth is modified temporarily.

Yawn, their tech is nothing spectacular and there is going to be increased competition by others who can offer the same thing without getting barred by the US government and most tech leaders who found them dencrypting messages in China and then re-encrypting them. The only thing that keeps people from shorting this back to the ground is that undoubtedly they will get a huge portion of the Chinese market and may be bought out by a US tech company someday. It is always easier to buy clients than it is to build them over time.

Tech will have a tough time if they are heavily involved with China as Trump uses China as a way to rally his core again. I'd stay away from Apple and Amazon. Microsoft will fare better but Alphabet and Facebook would be the better of these choices right now. Facebook is way overpriced compared with Google right now even if Google is faced with another lawsuit. This is nothing new to them and really is not of great concern. Facebook the issue is if kids will embrace it like the prior generation. I don't really see it happening.