The Downgrade Massacre Has Started

[Banjo]

https://wolfstreet.com/2020/03/27/the-downgrade-massacre-has-started/

 

[nooby_mcnoob]

Excellent. Now some people will be forced to sell!

 

[Sekiyo]

ES is going to 2750, 2800 then Ciao bella.

 

[NY_HOOD]

Other than ford and maybe a few hotels, no real big names in those downgrades.
Downgrading churchhill downs isnt exactly earth shattering. That said, there will be more substantial downgrades.

 

[zdreg]

Are the downgrades going to be sold or bought or just ignored?

 

[nooby_mcnoob]

Indeed, the name of the game is to shake out. It was reported that 9/10 retail accounts have done nothing through this drawdown.

So, here is my prediction using @dozu888 analysis:

* Big companies will start putting out shit earnings
* Analysts will downgrade to "market perform"
* Market will tank, 5/10 retail accounts will capitulate
* Big companies will restart buybacks
* New ATH

This has been the game for more than a century now. There is no reason to stop this.

 

[zdreg]

Big companies will restart buybacks

Companies that accept government bailout money may be forbidden from buybacks. I have enough confidence in American business that they will find a workaround.

 

[nooby_mcnoob]

Companies that accept government bailout money may be forbidden from buybacks. I have enough confidence in American business that they will find a workaround.

I don't see FAANG needing bailouts, I'm leaning towards leveraging on QQQ for the final bottom.