Lions and Tigers and… You Know the Rest

It’s been what feels like a lightning-fast switch from the economy enjoying its longest and slowest period of growth to setting new types of records… Last Monday was the market’s worst day since the financial crisis, Thursday anted-up with the worst day for the market since 1987, and this drawdown has set a land-speed record for the fastest 25% drawdown in the last century. The Fed’s certainly taken notice, and stepped in again over the weekend with additional emergency measures, including slashing rates by a full percentage point and launching another $700 billion in QE. This didn’t go far to reassure investors though, as the circuit breakers kicked in yet again this morning to halt trading. These market losses have led the S&P 500^® Index’s forward P/E ratio to settle in more reasonable territory at least… but will earnings be able to hold up as the world hits “pause” in the name of social distancing? With rates at (even more dramatic) historical lows and banks well-stocked on capital, we may soon see many business turning to loans to ride out the current crisis.