Re:Effect of economic crisis on America’s small businesses [...
by SpicyLemonZest on Friday March 20, 2020 @10:28PM
(#22643738)
It's not really possible for the market to drop only a little bit in response to half the economy shutting down. Stock prices are an expectation of future cash flows, so they have to drop on news that a huge chunk of those future cash flows are cancelled.
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Re:Effect of economic crisis on America’s small businesses [...
by codingslave on Friday March 20, 2020 @10:31PM
(#22643753)
Look at Boeing stock.
Companies dropping 50% because they miss 3 months of revenue?
Re:Effect of economic crisis on America’s small businesses [...
by sokoloff on Friday March 20, 2020 @10:34PM
(#22643776)
If that 3 months risks a bankruptcy, that might be right. Long-run valuation for shareholders doesn’t matter if the bond-holders end up with the company.
I suspect this is a 12-24 month economic event, maybe longer before it fully rolls through.
Re:Effect of economic crisis on America’s small businesses [...
by senordevnyc on Friday March 20, 2020 @10:37PM
(#22643800)
It’s insane to think that Boeing will just return to normal in 3 months. This could depress air travel for years.