A disaster report season is coming - the good, bad and the ugly
עודכן ב: 3 יול 2020
Since 2012, companies earnings have been declining. That did not stop stock prices from breaking record highs. Demonstrating a complete disengagement from the core fundamental of the capital markets - the relationship between earnings and return
Since the sub-prime crisis, we have experienced an almost uninterrupted rise in share prices while constantly breaking records.
Following the Corona crisis, many question marks are rising:
When will we exit the containment phase and move into the growth phase ? forecasts speak of coming 2021 as a year of growth, but even in the optimistic scenarios we will still be in stagnation compared to the pre-epidemic period
If we look at today's immediate challenges: The bankruptcy storm, the disruption of major business models like tourism, entertainment, air transportation, the commercial and offices real estate industry - How would it affect the global economy and especially the banking sector? Provisions for doubtful debts will leap and it will impact the whole financial sector profits.
How will the social distancing and continues on going pandemic costs will affect corporate profits? The whole entertainment and dining world will have to reinvent i