Monday, February 24, 2020

"It's Total Panic" - Store-Shelves Empty As Virus-Spread Sparks Panic-Buying Food & Masks Across Italy

From Zero Hedge:

Update (1050ET): It's not just food. As Bloomberg reports, in the tiny hamlet of Cassago Brianza, half way between Milan and Lake Como, Giovanni Casiraghi was taken aback to find a long line of customers waiting when he opened his industrial equipment store on Monday morning.
They all asked for the same thing: a mask typically used in building sites or factories.
In less than 30 minutes, he had sold more than 500 of them.
“We sell industrial equipment and I know most of our clients, so I was astonished when people I’ve never seen before asked for these professional masks,” the 71-year-old said.
“Someone told me that I was one of the few shops to still have protective masks. Panic is spreading even here, far from the epicenter of the outbreak.”
Giovanni Casiraghi at his industrial equipment store in Cassago Brianza.
“It’s total panic,” said Michela, whose family owns the L’Arte del Panino bar in west Milan.
“There have been very few clients today. And we have to shut down the bar at 6 p.m.” She declined to give her last name.
*  *  *
As Summit news' Paul Joseph Watson detailed earlier, people in several regions of Italy have reacted to coronavirus spreading throughout the country by panic buying, leaving some store shelves empty.
With more than 220 people infected, Italy has the most coronavirus victims out of any country in Europe. Seven people have died.
Footage out of Milan shot yesterday shows some products almost or entirely out of stock.
Some residents flippantly likened the situation to a “zombie apocalypse.”
Numerous museums, cinemas, bars, businesses and schools have also shut down and sporting activities have been suspended.
The Venice Carnival was also cancelled, while designer Giorgio Armani streamed his Milan Fashion Week event from an empty theater.
The panic is largely being driven by the speed at which coronavirus cases in Italy jumped from just 3 on Thursday to over 220.

“There is panic and a surreal atmosphere,” said Melinda Baret, a Filipino woman working in Milan as a domestic helper.
“I’m traveling using a face mask, and this morning in the metro there were fewer people than usual, most of them with a mask and the rest with a scarf protecting their face. I’m still going to all the families I work with, but I’m using a lot of precautions. I’m scared.”

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Saturday, February 22, 2020

401(k) Millionaires Surge To Record Level Under Trump

From Zero Hedge: 

A Fidelity Investments press release on Thursday said the number of customers with more than $1 million in their 409k  401k soared to record levels in 4Q19 fueled by higher savings rates and surging stock markets. 
There's a reason why President Trump touted 401k growth during his State of the Union address last week, because balances are increasing, and it will help him win the election. 
Fidelity noted that 401k millionaires soared last quarter, reaching a record level. Customers with the brokerage house that have over one million dollars in their 401k hit 233,000, up from 200,000 in Q3, a 17% jump M/M. 
The number of IRA millionaires increased to 208,000, also a record high and an increase from 182,400 in Q3. 
All of these new 401k and IRA millionaires were created through President Trump's pressure on the Federal Reserve to unleash easy money policies to boost the stock market.
And, of course, as we all know, JPM's drain of liquidity via Money Markets and reserves parked at the Fed promoted a liquidity crisis that resulted in "Not QE," which allowed even more liquidity to flow into the stock market starting last September, the same period when all of these investment accounts soared in value. Coincidence? 
Kevin Barry, president of Workplace Investing at Fidelity Investments, noted in the release that "growth in savings levels over the last 10 years demonstrates the positive impact of taking a long-term approach to retirement, and recent Fidelity research demonstrates workers who do so have reason to feel increasingly confident about their retirement readiness."
"However, as we enter a new decade and continue to see markets rise and fall, it's more important than ever to remember some of the important elements of a successful retirement strategy – these include maintaining positive savings habits, ensuring your account has the right balance of stocks, bonds, and cash, and continuing to focus on your long-term savings goals," Barry added.
Sven Henrich via NorthmanTrader.com recently discussed the topic of soaring investment accounts, called it: "FOMO by executive order I called it."
Every chance Trump gets, he tweets or tells everyone that their 409k 401k is performing great. 
Raoul Pal of Real Vision had a good take on it:
The irresponsiblity of this, telling the average person to take more risks this late in the cycle is simply staggering, regardless of what the markets do. To make them think a 50% return is low lacks any fiduciary responsibility. This is worse than the Greenspan housing comments. https://twitter.com/realDonaldTrump/status/1215285845336502272 
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It seems that the Fed's easy money policies over the last year, juicing markets to all-time highs, could be a vote of confidence by the central bank to get Trump reelected.