Yesterday marked a significant event: stocks took a plunge instead of rising. In particular, the S&P 500 experienced a 5.89% decline. However, that was just the tip of the iceberg—Gannett Co. tumbled by 29.5%, Noble Corporation fell by 25.51%, and Denbury Resources dropped by 23.65%.
So, the burning question is: should you buy the dip?
To truly consider this question, we need to take a step back and examine the bigger picture, revealing several crucial dynamics in the retail sector.
First, it’s clear that a significant shift has occurred in American retail. While retail investors continue to engage, the industry itself seems to be in turmoil. Pandemic, economic collapse, full societal breakdown—these forces are seemingly unstoppable.
According to Bloomberg, May became the worst month for corporate bankruptcies since the Great Recession, with 27 companies filing for bankruptcy protection, each carrying at least $50 million in liabilities. Noteworthy names included J.C. Penney, Neiman Marcus, and J. Crew. Continue reading
“And the will of Zeus was moving towards its end.” – Homer
Symbiotic Disharmony
The pulse of Western civilization continues to thump, marked by a cycle of pandemic, economic turmoil, and societal breakdown. This sequence unfolds as chaotically as a minor pentatonic scale.
Last Sunday, peaceful protests escalated into riots, looting, and arson in our small community. Even local police struggled to maintain order, leading to the deployment of the National Guard to restore peace. Remarkably, some Guard members returned the following day to assist with cleanup efforts.
This troubling narrative—pandemic, economic decline, societal chaos—seems to echo across cities nationwide. For many, the moment is critical. The setting is urgent.
The transition from government-imposed pandemic lockdowns to curfew orders feels as smooth as day turning to night. The distinction between the two is subtle, akin to the difference between ketchup and catsup. Continue reading
This week, a sense of despair permeated discussions. The optimistic narrative of a swift economic recovery has waned quicker than a fleeting moment. Yet, amidst this gloom, one notable economist has maintained a sense of hope.
On Wednesday, Nobel laureate Paul Krugman emerged from his analysis of liquidity traps long enough to assure Noah Smith at Bloomberg that the downturn witnessed between 1979 and 1982 suggests a rapid recovery could unfold once the virus is contained. He emphasized, “I don’t see the case for a multiyear depression.”
This optimism is promising. A quick rebound would alleviate much of the financial distress currently faced. However, we worry the fallout from government-mandated lockdowns may have far-reaching repercussions.
The stark rise in government spending and debt will not disappear. In just four months, the budget deficit has surged by nearly $3 trillion, bringing the national debt to over $25.6 trillion—outpacing the economy itself. Continue reading
Scientists continuously strive to unveil the unknown through innovative tools and technologies. While the honest practitioners recognize the limitations of their work, they persist in their quest for groundbreaking discoveries.
Conversely, charlatans are indifferent to genuine knowledge and, frustrated by stagnation, have abandoned the pursuit of authentic science. Focused solely on maintaining their university positions, they manipulate complex methodologies to serve their self-interests.
The field of epidemiology is facing a crisis. The misguided mathematical models pushed by certain ‘experts’ have cast a shadow over the discipline. The controversial Imperial College model, spearheaded by Professor Neil Ferguson, which justified lockdown measures in both England and the United States, has been discredited as fundamentally flawed.
If the outcome had been a mere academic failure, it could have been rectified in the name of progress. However, the implications extend far beyond an academic dilemma. Continue reading
