The continuing strength of the stock market, even as the coronavirus pandemic batters the U.S. economy, has baffled many investors. The Dow Jones Industrial Index fell some 35% in 20 trading days the first three weeks of March as COVID-19 began spreading rapidly globally, but it has since gained nearly 60% to levels above 28,650. At the same time, the Commerce Department reported the U.S. economy shrank 31.7% in the April-June quarter. Part of our job at Equitas is to research many areas of the market and the economy, analyze the current environment, and to search for the investment opportunities. While there are numerous views and theories, in this KnowRisk Report we explore and expand on why the stock market is so strong, while the economy is so weak. We start with Wharton finance professor Itay Goldstein who has boiled it down into two reasons: the long-term prospective of the
The global decline in air travel will be worse than previously forecast and a new report on corporations’ plans for travel through 2021 shows that the recovery of business travel demand will continue to be sluggish even after one or more Covid-19 vaccines become available, hopefully, in the first half of 2021.
The International Air Transport Association, the airline industry’s global trade group, said Tuesday that global passenger traffic this year will be down a whopping 66% from 2019. Previously IATA had forecast a decline of 63%.
While the revised view is only 3 percentage points worse than IATA’s previous forecast, the enormous numbers of passenger miles
Through a one-of-a-kind experiment at the Department of Energy’s Oak Ridge National Laboratory, nuclear physicists have precisely measured the weak interaction between protons and neutrons. The result quantifies the weak force theory as predicted by the Standard Model of Particle Physics.
The team’s weak force observation, detailed in Physical Review Letters, was measured through a precision experiment called n3He, or n-helium-3, that ran at ORNL’s Spallation Neutron Source, or SNS. Their finding yielded the smallest uncertainty of any comparable weak force measurement in the nucleus of an atom to date, which establishes an important benchmark.
The Standard Model describes the