Road to Recovery - Price Comparisons, Earnings: AQN, CPX, REI, CRT, CRR

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Market corrections are inevitable, so are the recoveries that follow. The common cause for corrections since WW II has been financial, typically credit expansions culminating irrational exuberance. This time around a demon virus short-circuited the usual business cycle. The stock price drop is unnerving given how quick it happened and at a time when governments and central banks were already over extended. It has piled one major problem on top of another, exponentially multiplying anxiety levels.

It has all happened quickly, the three months of turmoil since seems much longer. The medicine to get out of the COVID grip will come from medical technology. It will be surprising how soon this can turn the tide, likely some time before year end with sooner preferred. In the interim, support from central banks is preventing the whole situation from becoming much more serious.

Medical technology is rapidly coming to the rescue, but until then near term risks remain. Governments have become the primary buyers of private sector debt required to fund the rising unemployment and business bailout costs. Comments this week cover how this might impact interest rates and how to deal with the potential volatility until medical technology comes to the rescue.

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