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“Mission is simple to make you money i m here to level the playing field field for all investors. There s always a bulwark at summer and i promise to you find it mad money starts. Now hey. I m kramer welcome to may have money welcome to kramer akka.
Before we. Start. Let s go to steve liesman. With some breaking news.
Hello steve. It s jim you ve got me you re live the federal reserve announcing yet another program the primary dealer credit facility this is one of the biggest programs. The federal reserve has yet to do it is call it the kitchen sink of lending programs. It provides short term overnight and term funding up to 90 days for a very broad range of assets.
I can tell you the kinds of assets. That now primary dealers can bring to the fed to get funding investment grade corporate debt securities international agency securities commercial paper municipal securities mortgage backed securities asset backed securities even equity securities excluding etfs this is sort of the emma lazarus of bring us your poor your tired your hunger your weak. The fed is saying bring us your paper will obviously give it a haircut. But will also lend it to you overnight.
So now the fed implementing almost all still a few left of the financial crisis erupts from the great recession that it had in place today put in place the commercial paper facility. It already has the really launched a quantitative easing program. I m bringing weights down to zero jim. What is left in terms of the areas of pressure that you see i m sorry.
I don t hear jimmy well all right well look like to you thank you so much steve and now. We know exactly how serious. The fed is we know everybody else is getting pretty serious and that should help tomorrow s opening. I do believe it s real okay let s get back to mit money now we are at the beginning of the most treacherous phase of this kovach bear market.
The point where the strongest stocks rally like crazy and the weakest ones well the weakest ones they retreat right into the wilderness. We saw that all today with travel and leisure airlines that s the big story today dal. Gaining one thousand. Forty nine points making up some of that lost.
Mr. S p. Jumping six percent nasdaq. Forty six point.
Two three percent in other words. This market is now going into triage mode. Just like the hospital s new europe and soon here the winners are trading like winners. And the losers are trading like there is no for the shareholders for you this bifurcation is why i kept warning.
You that index funds are not the right way to invest here the winners and losers are just so obvious to you and me come on they won t we don t need to own them pamela good in many ways. That s what we want to see it means the market is working it s looking at the fundamentals of individual companies. So then why did i say it s treacherous because we re going to have so much bad news coming over the next couple of weeks about the illness not necessarily about the assets. But the illness that it s too dangerous to come in here and start buying today s winners after today s spring loaded run.
Although i think those stocks in particular have put in a bottom beyond that there s some good news and some bad news. We re gonna start with the bad news. Why because i m kind of a bad news. First guy first.
We are a service economy two thirds of our gdp is based on the vast service sector and this virus is devastating your service industries. We can t congregate but that s how these companies make money sold out stadiums crowded restaurants flights is somewhere warm trips to the mall even trips to the gym or the hair salon or the oldest of america here. This is grabbing a beer. These are all out in some places.
They re illegal and with good reason more than a hundred million people worth in the service sector. You heard me right 100 million people not all of them lose their jobs. But we re looking at an unfathomable number of last year in theory. It could be worse than the great depression.
Because the whole ecosystem of service is being eroded. It s not destroyed thriving institutions are being mowed down right alongside struggling ones. The number retailers on the verge of going under is staggering. Small ones.
Sole proprietors giant change that employed tens of thousands same goes for restaurants really good companies are getting wreck casinos hotels. Every aspect of hospitality. You name it i can t even look at some of the prices some of these retailers. I mean we ve got three chosen traded at a and 80 now they re at eight.
I mean this happened overnight second when it comes to fighting cove in nineteen. We were way behind the curve. But now we re ramping up and we ramping up testing too that s good. But it means we re about to see some huge spikes in the number of infected people.
So called denominator because we finally had the capacity to diagnose them now it could have been work far worse. But the fact is we re still nowhere near the peak and when we get there it s gonna knock down everything including many of the stocks that surged higher today the infections and the death toll will soar possibly overwhelming our health care system and forcing doctors to make horrific decisions about who lives and who dies third outside the service sector. Two of the largest industries in america are being challenged at the exact same time just bad. Luckier oil and aerospace.
The russians and the saudis are flooding. The world with crude undercutting our producers. The permian is in trouble meanwhile boeing can t get approval for the redesigned 737 max once its most lucrative product line and its customers. The airlines are on the ropes.
We know boeing is seeking tens of billions of dollars in aid. I got some thoughts on how to do that later in the show okay. It s not just a parade of horribles. It s a macabre dance of death and destruction and i m going to put it to you right up tuck.
Now. Let s talk about why the market was up today. Because there are signs that there s an other side to this pandemic as in we might come out on the other side once this is over tickling fueled by a huge amount of stimulus. No one s cheering.
But the federal government finally is recognizing the scale of what s ahead of them hate him or like him the president has put together an a list team to tackle the illness. The redoubtable dr tony fauci dueling with the disease treasury secretary steve venusian trying to make sure that working people not the fact that s not the mainers well working people come out in one piece. These are both herculean tests again. Though.
There s some good news here. We re now getting millions of testing kits. Many made by last night s guest thermo official that s a start. We have data that shows this virus can be carried by nearly anyone.
But the death rate is heavily skewed toward the elderly with pre existing conditions. The numbers are so stark. It s easy to see why dr. Feld.
She s more worried about young people who think they re invisible getting infected. And then giving it to their much more at risk older relatives. If we wring fast asleep elderly. So that they don t come in contact with anyone under 40 that could make a huge difference then my favorite because it is still mad money the ingenuity factor tonight.
We re hearing from a jenner on we re just having some success maybe a lot of success with an anti inflammatory drug that suppresses some of the viruses. Most lethal symptoms. And they also have high hopes for a possible vaccine. Much sooner than i thought don t scoff regeneron conquered ebola.
They might have something and have something in record time. Meanwhile juliet s testing. One of their antivirals. We don t know enough who knows.
But it could be good others are using plaque and nil malaria drug. I think there s a possibility success there it s a mistake to bet against american ingenuity over the long haul. How long anybody s guess. But i m not taking the other side of that tray finally let s deal with the economy.
I m beginning to be heartened by some of the moves from the private sector. Not just the public later we re speaking with sheryl sandberg she s facebook s chief operating. Officer surely you had a hundred billion dollar program to help 30000. Small businesses across over 30 countries.
Now some problems. Though are so big. They can only be solved by the federal. Government washington needs to step up with unemployment insurance.
And what minutia tis said would be a trillion dollars in the economy. I wish that there were that were enough. This is a malcolm x moment when it comes to people who are in days are being wiped out by something beyond their control. The government needs to help by any means necessary.
Maybe. That s what leasman was getting at maybe. That s the trick. If the fed just guarantees pretty much everything we re back to 2007 2008.
But more terra firma. The president. The treasury secretary are talking about business interruption insurance. I m counting on that insurance going to small medium sized businesses and to the 1099 workers.
The sole proprietors who being torn asunder by colvin by something they didn t have anything to do with garbage got to put money into the hands of small business owners to meet payroll. If they do we can tide them over until the economy comes back as long as they keep me on the payroll 12. Trillion. I know it sounds like a lot.
It s not enough. It s roughly the size of the bank problems in 2007. But this is bigger and harder and the money has to get there faster whether it be through the irs or the mail. I don t know turbo tax.
My advice think big perhaps keys announcement will help i m lady on treasury secretary munition for even more details yes. The market rallied today. But the stocks that rallied are the wrong ones. They re the ones that have the strong enough bouncy to survive regardless they can come out on the other side of the hiatus.
Because kovat is crushing their rivals. Walmart surged more than 11 percent today why masters stimulus in the form of direct payments. But also because they re smaller. Competitors could be wiped out amazon sword.
7. Ecommerce thrives when people staying at home footings rug stocks that i ve been recommending all along they finally exploded higher recession proof at these levels. I think you actually need to wait for another pull back before you buy some of these like that general mills of where i ve been general is up five that s not right just not right. I think we ve seen a bottom though in those stocks they need to be boiled pull backs what s still safer utilities they re impervious to weaker economy buoyed by a lower interest rate than you re ever going to see ever again the bottom line.
Though it feels like a tarp moment. The market rock that you re hired after congress passed. The bank bailout in october of 2008. Then was followed by another horrendous decline of the stock market.
It s the system kept falling apart just think back then we re finally moving the right direction. But i think we need to overcome more looming bad news about the virus. And about bankruptcies before the whole industries can bottom even again as many stocks have already put in the bottom. Okay.
Let s take some calls. Let s go to larry in florida. Larry jimmy chill. Not that you.
But that s okay. That s okay. What s up so following a relentless post merger beat down with uncertainty about execution of the company streaming platforms. Now with the cancellation of march madness and other sports due to be broadcast.
What are your thoughts on bike on cbs4 this year in the neck. Okay i have a. Conference call tomorrow with. Club.
Members the actual owners pluscom club and on it i m going to eat not crow. But i think the many pros that were in the in the movie. The birds where they got to the suit suzanne pleshette. I mean.
It was just one of my worst picks. I gotta talk about why i was so bad. But it wasn t my well it s my fault because my chapel trust those but we re gonna dress that larry and well you know what they can t all be good ones alright. We re moving on the right direction.
But i do think there s more bad news virus more bad news bankruptcies that we have to overcome before the whole industry s bottom. Although against some stocks have bottoms already oh man money tonight. Uh potential breakthrough on a coronavirus drug. Today.
After regeneron said. It aims to have a potential koban. 19 drug ready for clinical trials by early summer. This is news people there s moose poking.
The chief science officer. The company and i like what i m gonna hear i think then regardless of how the cova 19. Pandemic plays out it has already been brutal for small business. So let s go to facebook sheryl sandberg by now the company s 100 million dollar grant program money in the pockets of small business.
Right now can help and as telemedicine emerges as the necess insist of necessity and the fighting spread a virus. I m talking with pilot player and well find out how its client faces where the 240 health systems. Putting two thousand hospitals are relying on the new technology. So stick with flavor don t miss a second of mad money follow at jim cramer on twitter have a question tweet cramer hashtag mad tweets send jim an email to mad money at cnbccom.
Or give us a call at one eight hundred seven forty three. Cnbc miss something head to mad money does cnbccom. You you ” ..
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The stock market has reached the stage where “the strongest stocks rally like crazy and the weakest ones they retreat right into the wilderness,” the “Mad Money” host said.
Stocks surged Tuesday rebounding from their worst day in more than three decades as Wall Street cheered White House plans that could inject $1 trillion into the U.S. economy to cushion the blow of the coronavirus.
The Dow Jones Industrial Average closed 1,048.79 points higher, or 5.2%, at 21,237.31. It briefly dipped below 20,000 for the first time since February 2017 before rebounding. The Su0026P 500 was up 6% at 2,529.19 while the Nasdaq Composite gained 6.2% to end the day at 7,334.78.
The Trump administration is weighing a fiscal stimulus package of more than $1 trillion that includes direct payments to Americans, according to a source familiar with the matter. Earlier, Treasury Secretary Steven Mnuchin told reporters the government is considering directly sending checks to Americans in the next two weeks. Americans need cash now, he said.
Mnuchin added corporations will be able to defer tax payments of up to $10 million while individuals could defer up to $1 million in payments to the Internal Revenue Service. Mnuchin also said President Donald Trump authorized the deferral of $300 billion in IRS payments.
We know there s going to be monetary policy. We know there s going to be fiscal policy and we re hearing more about that. That s two legs of the stool, said Art Hogan, chief market strategist at National Securities. The federal health care policy response, that s another one. I still think the information on that needs to get better.
We ve done a lot of recalibration of equity values, all based on an assumption of how much economic damage is done, but we won t know exactly how much damage for a period of time, said Hogan. One thing I m sure of is the markets will have found a bottom long before the news starts to get better.
Treasury yields jumped, with the 10-year U.S. rate breaking back above 1% on news of the big stimulus plan. Yields move inversely to prices. The iShares 20+Year Treasury Bond ETF (TLT) dropped more than 6% as investors fled bonds for stocks.
The Federal Reserve announced measures to help companies struggling to get short-term funding amid the outbreak. The market has been hampered by a lack of demand for paper issued, and Wall Street has been looking for central bank intervention along the lines of what happened during the financial crisis.
Amazon shares jumped 7% after an analyst at Bank of America noted the e-commerce giant will benefit from the global in-home shift due to the coronavirus. Netflix climbed 7% as well while Apple closed 4.3% higher.
Biotech giant Regeneron, meanwhile, said Tuesday morning that it s aiming to have doses of a potential drug for COVID-19 ready to start human clinical trials by early summer. The announcement, which represents a marked acceleration in the company s drug timeline, sparked a 11.5% rally in the company s equity.
More than 5,700 cases have been confirmed in the U.S. along with more than 90 deaths, according to data from Johns Hopkins University. President Donald Trump also said the crisis could stretch into August, adding the administration may look at locking down certain areas.
The Dow and Su0026P 500 had on Monday their biggest one-day losses since 1987, falling 12.9% and 12%, respectively. It was also the Dow s third-worst day ever. The Nasdaq Composite had its biggest one-day plunge ever, tumbling 12.3%.
Yesterday was a real washout, said Peter Cardillo, chief market economist at Spartan Capital Securities. I think we ll have a recession. It s just a question of how steep it will be.
The Cboe Volatility Index (VIX) Wall Street s preferred fear gauge posted its highest-ever close at 82.69. That tops the financial crisis peak of 80.74. On Tuesday, the VIX traded down 9.2 points at 73.2.
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