Markets Down Large On Overvaluation Fears

May 13, 2020

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Closed-off tables during COVID-19 pandemic, Stewart's Shops, Walden, NY
Image by Daniel Case

Financial markets were down big today, close to 2%, after several investment personalities openly worried about high valuations on the rebound from the March equity lows.

POTUS did not have good things to say about the development.

Deflationary trends continued with lower than expected PPI numbers.

Fed Chairman Jerome Powell hinted at more 'fiscal' work to be done by Congress to pull the US out of the recession.

When the so-called “rich guys” speak negatively about the market, you must always remember that some are betting big against it, and make a lot of money if it goes down. Then they go positive, get big publicity, and make it going up. They get you both ways. Barely legal?
— Donald J. Trump (@realDonaldTrump) May 13, 2020

The price for crude oil on international markets fell approximately 2% despite an unexpected draw on stockpiles.

Producer Price index (YoY) (Apr) printed at -1.2% vs -0.2% consensus estimate.

Producer Price Index ex Food & Energy (MoM) (Apr) printed -0.3% vs 0 estimate.

Producer Price Index ex Food & Energy (YoY) (Apr) printed at 0.6% vs 0.9% estimate.

Producer Price Index (MoM) (Apr) printed at -1.3% vs-0.5% estimate.

EIA Crude Oil Stocks Change (May 8) printed at -0.745M vs 4.147M estimate.

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CDM Staff

The mission at Creative Destruction Media is to be the catalyst for the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."