There could be a side effect of the Covid-19 virus to the brain of stock traders even if they are not infected!

This chart says it all.

Look at the chart. The white line is the S&P 500 and the red line is the comatose profit margins of the same companies. No correlations so ever between the two lines, but the traders are on a happy-go-crazy frenzy. Either they know something, or their brain is shrinking because of the virus molecules floating in the air.

Big balloon burst in the horizon. I feel for the Millennial novice traders who jumped on this frenzied ride.

 

Copyright Crescat Capital / Bloomberg

 

 

Published On: 06/21/2020 / Categories: Blog /