If Congress doesn't act on the coronavirus aid package, BTIG's Julian Emanuel sees stocks plunging another 20% (via TradingNation)
If Congress doesn't immediately pass a coronavirus aid package designed to help the U.S. economy, he warns it'll spark more damage to an already battered market.
"We're in this situation where politics seems to be getting in the way," the firm's chief equity and derivatives strategist told CNBC's "" on Monday. "The politicians are playing with fire... If you wait long enough, you risk changing psychology incrementally more, and we all know between Monday and Friday, if anything, news in terms of the virus is likely to worsen.
The wrangling overshadowed the Federal Reserve's additional measures on Monday to help the markets. Not only did the Fed announce it will purchase more Treasuries and mortgage-backed securities, it also told investors it'd also buy corporate bonds and corporate bond exchanged funds in an unprecedented move"We were very happy with what the Fed did," said Emanuel. "But effectively, the Senate is canceling out the beneficial effects of the Fed's actions."level to watch is 1,764, a more than 20% drop from current levels. The index has already seen a 35% plunge from its all-time highs hit in mid-February.
"Given all the stimulus, given our view that ultimately the virus will come under control — however long it ends up taking — is that stocks start to represent pretty reasonable values," Emanuel said. "We think you should be tip-toeing in with the expectation that you could go lower."
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Senate GOP coronavirus bill aides U.S. transit, airports but loans not cash for airlinesA Senate Republican coronavirus stimulus package would provide financial aid to ...
Baca lebih lajut »
Senate GOP coronavirus bill aids U.S. transit, airports but loans not cash for airlinesA Senate Republican coronavirus stimulus package would provide financial aid to ...
Baca lebih lajut »
Stock market live updates: Dow futures down 400, waiting on Congress, 'limit down' againStocks pointed to declines on Monday as investors await a stimulus package from the coronavirus.
Baca lebih lajut »
READ: House Democrats Release 3rd Coronavirus Response BillAmid criticism that they’re delaying a coronavirus response bill, House Democrats released a counterproposal that bars companies using bailout money to buy back stock and boosts unemployment insurance. This could pressure Senate Republicans to make a deal.
Baca lebih lajut »
President Trump Joins Democrats in Calls to Block Share BuybacksAs Congress rushes to bail out industries slammed by the coronavirus pandemic, President Trump has joined Democratic lawmakers demanding corporate aid include new restrictions on stock buybacks.
Baca lebih lajut »
‘This is bulls---’: Bitterness takes over Senate as lawmakers clash on rescueNormally-staid lawmakers were angrily clashing on the Senate floor Monday and the chamber remains deadlocked over an emergency package to rescue the economy from the coronavirus pandemic
Baca lebih lajut »