RE:RE:So tempting here at 50.00!!!!!People are not pricing for an apocalypse. Or rather, the version of the apocalypse that they're pricing for is the one we're realistically going to get. Ignore people who are tossing out statistics of mortality rates - that's not what's driving this. What's driving this is the very real impact to the economy that the pandemic response will entail. Furthermore, in Canada we are seeing the decimation of the O&G sector which was already underway before the virus and oil price shocks. Capital has been fleeing Canada's oilpatch for years, and it's not gonna stop. This will impact the banks, primarily as financiers of this market, and secondarily due to related business loan losses and consumer and mortgage defaults.
Yes, given a sufficiently long horizon things will probably be ok (though don't tell that to the Japanese, and also, given a sufficiently long horizon we're all dead anyways) but it is just wishful thinking to jump in now before the dust has even begun settling. Heck, the collapse may well have only begun.