Robinhood Snacks - 📉 COVID-19 crashes the market

With markets in crisis mode, we're in this fight together

 

Last Week’s Market Moves

 

Dow Jones

23,186 (-10.36%)

S&P 500

2,711 (-8.78%)

Nasdaq

7,875 (-8.17%)

Bitcoin

$5,552 (-39.25%)

10-Yr US Treasury

0.981%

Hey Snackers,

Global health pandemic, market crash, economic sick day (sick "month?" season? year?). Policymakers tried to get extra creative last week (and through the weekend) to resuscitate everything:

• Financial medicine: Interest rates were just cut to zero and emergency loans are ready to go for financial institutions.
• Economic medicine: Students don't have to worry about loan interest charges, the newly unemployed are set to get enhanced benefits, and struggling small businesses have government loans available.
• Health medicine: Congress passed a bill to make COVID-19 testing free and big public events are virtually all cancelled. Major cities have started takeout-only rules for restaurants/bars.

Markets rallied big on Friday after a brutal week — the Dow had its best single-day point gain ever, after Wall Street's worst day in 30 years. The S&P 500 has fallen over 16% this year, with more market turmoil likely ahead.

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Crash

Policymakers enter crisis mode on COVID-19 as markets crash

THE TAKEAWAY

What goes up, must come down (and vice versa)... Each “bull market” is followed by a “bear market”, and versa vice — it’s like a see-saw with giant duffle bags of money sliding back and forth.

• Bull markets: Once stocks rise 20% overall from the last low, it’s called a “bull market”, which tends to include economic growth and falling unemployment.
• Bear markets: Last week stocks fell past the “bear market” threshold, meaning we’d dropped over 20% since February’s record highs. This tends to bring economic shrinkage and rising unemployment.
• Yo-Yo Mountain: Wealth advisers generally recommend not timing the market's ups/downs because they're hard to predict. Over the past nine decades, stocks overall have risen about 10% per year on average. It's like a long hike up a mountain with a yo-yo going up-and-down, but the mountain's overall slope rises.

Highs

Who's up...

Lows

... and who's down

What else we're Snackin'

• Visualize: The history of pandemics, visualized in a 1 infographic — see how coronavirus compares to the others so far
• Forget: The top 10 items most left behind in Ubers, according to Uber — #3 is "BMW keys" (#2 is $100 bills)
• Lead: How to lead during times of crisis and uncertainty (like Mom always said, it comes back to communication)
• Stay: How to not go stir-crazy while self-isolating (push-ups are key — you can also write a classic novel)
• Shop: A "pandemic planner" thinks coronavirus stockpilers shouldn't waste their money on these 4 items

The Snacks Daily Podcast

Direct-to-patient "half-icorn" Ro is trying to become the Casper of erectile dysfunction meds. Its new strategy: launch pharmacies so it can vertically integrate your healthcare experience with 500 prescriptions.

We’re looking at Ro's new pharmacy play and giving you more perspective on how this market crash compares to previous ones on our 15-minute pod.

Tune into Snacks Daily on Apple or Spotify.

Snack Fact Of the Day

When the price of oil fell 24% in 1 day last week, the value of Earth’s oil reserves fell by a total $20T — that’s $2.5K per human being alive today

This Week

• Monday: Earnings expected from Tencent Music and Chewy
• Tuesday: Earnings expected from Baxter International and MongoDB
• Wednesday: Earnings expected from General Mills and Williams-Sonoma
• Thursday: Weekly Jobless Claims. Earnings expected from Accenture, Cintas, Scholastic, and Olive Garden-owner Darden Restaurants
• Friday: Existing Home Sales Report. Earnings expected from Tiffany & Co

Disclosure: Authors of this Snacks own shares of Slack

ID: 1120137

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