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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