Liberals are all giddy with their claims (again) that the US is headed into a recession, this time due to the coronavirus. However, history shows us that when the markets went down like they did earlier this week, they always rebounded ‘bigly’!
Liberal naysayers are again pushing a recession. They have been doing this since the night of President Trump’s 2016 elecion win. Today is no difference. This time it is because of the coronavirus.
Yahoo Finance, which has been pushing for a recession for the past three years, is at it again. Of course they have been dead wrong since President Trump’s election with markets up greater than 60% since the election. But now they are pushing a report from Goldman Sachs to support their hopes:
The coronavirus may wipe out corporate growth in 2020, perhaps completely.
Goldman Sachs said Thursday in a note U.S. companies will generate no earnings growth in 2020. Underlying the call is Goldman’s view that the coronavirus is expected to spread around the globe and severely harm economic activity. For 2020, Goldman slashed its S&P 500 earnings estimate by $9 and expects no earnings growth. Looking out into 2021, Goldman now sees $8 less in S&P 500 earnings and a modest 6% growth rate.
Despite liberal market projections of a material economic and market downturn, history shows this is not the case when the markets had days like Monday and Tuesday.
Sentimen Trader notes that when the markets dropped like they did earlier this week, they always rebounded by 2% in two months and by a medium 24.8% a year later.
We just saw 2 days with 90% of NYSE issues going down.
When we saw similar 2 day periods of such widespread selling in the past, $SPX rallied every time 2 months later by a median of +7.6%
1 year later? $SPX up every time by a median of +24.8% pic.twitter.com/sbgTaPRc9p
— SentimenTrader (@sentimentrader) February 26, 2020
