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Investors practice "social distancing" to financial assets, continuing market crash and lurch

Over the past month, equity markets and financial assets broadly, have been attempting to price in the dual shock of a pandemic and the sudden collapse in oil prices (which is viewed by markets as negative given effect on high-yield and drilling-related GDP).  Already, equity markets are down 30% from their highs and as we noted last week, this is pricing in >100% probability of a recession (based on price decline).

- Since 1900, there have been 22 equity drawdowns of 20% or more and the current 30% slide would rank #14 overall.  Notably, the typical bear market during a recession period is 30%, so the S&P 500 has already discounted a recession.

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REMOTE WORKING FOR FINANCIAL MARKETS -- MAKING THIS EVEN MORE A FOCUS ON SELLING LIQUID ASSETS Equities are responding to the growing stresses across financial markets. The 100% basis point Fed cut was completed ignored by investors Sunday evening and on top of the already fragile sentiment, likely contributed to the further selling we saw Monday.   The VIX just posted an all-time closing high, at 83.  This is higher than during the Great Financial Crisis (which had an intraday high).  Was part of this due to the growth of "remote working" for financial employees?  Many have posed this questio...

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