Stocks Erase Morning Gains

Catch Up Quick

• California will close indoor restaurants, movie theaters, and bars

• The White House seeks to discredit Dr. Fauci amid coronavirus surge

• Health care workers fear a new shortage of protective equipment

• Tech stocks rise to highs not seen since the dot-com crash of 2000

• Prosecutors reveal Ghislaine Maxwell tried to flee from FBI before arrest

• Tesla stock ($TSLA) neared the $1,800 mark this morning

• Analog Devices ($ADI) agreed to buy Maxim Integrated ($MXIM) for $20.9B

My Monday Opinions

• Iran and China have quietly drafted a sweeping economic and security partnership— this could turn out to be incredibly dangerous from a global perspective as it will clear the way for billions of dollars of Chinese investments and undercut Trump’s effort to keep the Iranian government and its ambitious nuclear programs isolated

• While the coronavirus poses the biggest threat for the young and old, the generations in the middle are not unscathed in the slightest— they are currently buckling under the strains of familial matters pertaining to taking care of both, residing in their prime work years with many distractions, and other financial pressures brought by recessionary elements

Thought of the Day

• Despite today's downturn, stock prices are becoming more and more distant from company earnings

• This is likely due to record retail volume, optimism around coronavirus treatments, and expectations about more stimulus

• In my opinion, the latter two of those reasons are in conflict

• Combatting the virus means decreasing the risk of its spread, in which the economy will legitimately revamp, rendering more stimulus wasteful

The Bottom Line

• Assuming the aforementioned are indeed current market drivers, this is a huge red flag, given contradictory nature implies mutual exclusivity (only one can happen), while upward price action is being driven simultaneously by both

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