The evolution of the media has led to a “disconnect” between the coronavirus and the public belief of the pandemic, according to Henry Abeyta of Empire Financial Research.
The reality: the coronavirus crisis is in the “seventh round,” Abeyta said in the Contrarian Investor podcast. In six weeks, or mid-September, there will be “perhaps less than 50” deaths in line with the day due to COVID-19, which corresponds to about one-tenth of existing levels, he said. “I’m the war on COVID is almost over.”
This tale lacks several key facts, according to Abeyta. In the United States, the virus affected other regions at other times: first in New York, where mortality rates were “horrible,” and more recently in states such as Florida, Arizona, California, and Texas (FACT states). This last wave is much less fatal. “Everywhere in the world that was played early has reached a certain prevalence or exposure of antibodies,” Abeyta says. This is true regardless of whether the spaces are completely enclosed like Italy, not at all like Sweden or somewhere in between. In all spaces, instances and mortality rates “collapsed” after about two months.
This, combined with unprecedented liquidity injections through the Federal Reserve, will result in a merger of global money markets. “Honestly, we’re up against something that looks a lot like the 1998-1999 period,” when the NASDAQ recovered 200% in about 16 months.
Today’s dot com? Electric cars, self-driving cars and online gambling. Tesla can succeed at $3,000 consistent with a consistent percentage and the NASDAQ can succeed at 20,000 before everything is said and done.
I’m a money publisher founded in New York. For more than two decades, I have written and edited publicity and monetary publications for Bloomberg News, The
I’m a money publisher founded in New York. For more than two decades, I have written and edited various advertisements and money publications for Bloomberg News, The Deal and Institutional Investor, among others. My purpose has been to locate and interview hedge fund managers, investors and portfolio managers, who can simply locate and exploit specific investment opportunities. I recently returned from a two-year stay in Hong Kong, lately I’m contributing to various publications, adding this one, and recently introduced my own podcast called Contrarian Investor. Its motto is “to give voice to those who question the dominant discourse in global money markets”.