| By Bill Bonner, Chairman, Bonner & Partners Stock Market starting to look very good to me! – Donald J. Trump RANCHO SANTANA, NICARAGUA – Yesterday, we watched the screen. The Dow was down 850 points at 11 a.m. By noon, it had lost another 50 points. By 1 p.m., it was down 1,000 points. Now it was getting peoples’ attention. By the close of the trading day, the market sell-off had become mainstream news. CNBC: The Dow Jones Industrial Average closed down 1,031 points, or 3.55%, at 27,960. The S&P 500 slid 3.4% to finish at 3,225, while the Nasdaq Composite closed 3.7% lower at 9,221. It was the Dow’s biggest point and percentage-point drop since February 2018. The Dow also gave up its gain for 2020. The S&P 500 also had its worst day in two years and wiped out its year-to-date gain. “The second-largest economy in the world is completely shut down. People aren’t totally pricing that in,” said Larry Benedict, the CEO of The Opportunistic Trader, adding a 10% to 15% correction in stocks may be starting. He also said some parts of the market, particularly large-cap tech stocks, appear to be over-owned. “It seems like there’s much more to come.” What will sink the U.S. stock market, we don’t know. But something will. When it will happen, we don’t know that either. But some time it will. And then what? World of Doubt and Ignorance Thank God for “like.” “Is” is okay for science, technology, and math and simple things, such as two plus two is four. But if you want to know why stock prices are falling… why you didn’t get a raise… why your wife is mad at you… or why the country is going to hell in a handcart, you need the comparative preposition, “like.” Like is useful even for things you’ve never personally experienced. This morning, for example, you may feel like you are 90 years old. You know what that means, even if you’ve never been 90 years old. “Like” is what connects us to the uncertain world we live in… a world of doubt and ignorance. It’s a world where we know next to nothing for sure. And yet, there are recurring patterns. Which is where “like” comes in. “Like” is how we recognize when it is getting cold… it feels like it. And how we know someone is being a complete jackass… because he acts like a complete jackass. It is when we know it is time to get out of the stock market or leave a party… because it feels like it’s time to go. This morning, we are looking at a lot of charts… and all show a familiar pattern. Lines bounce and bop… for months, years… and then, suddenly, drop in a straight line. Most of those charts come from the Far East… where we see everything seems to be dropping like a stone in a well. But the Far East is now the world’s largest economic bloc. And what happens there is not likely to stop at the Yangshan Deep Water Port Terminal. | Recommended Link | | Buffett goes “all in” on one tech? A Wall Street legend has just made a rather large discovery… For the past several months, he’s been tracking Warren Buffett’s top 25 holdings… And what he found was surprising, to say the least: 21 of Buffett’s favorite companies are going “all in” on a hot new technology… To the tune of $1.7 billion! This is remarkable because Buffett is notoriously “anti technology.” (In fact, he once joked about shooting down the Wright Brothers’ first plane at Kitty Hawk!) So, what is this new technology? And why are America’s biggest companies all in a race to implement it? To get the full story, watch this stunning new presentation… What is Buffett’s Big Bet? | | | -- | If It Looks Like a Duck… There’s trouble afoot, in other words. And afloat. On cruise ships. And on freight ships. The coronavirus is no threat to the human race. It could run around the world, killing 2% of the population, and almost everything would still function as before. Two percent is marginal. On the Monday after the Super Bowl, for example, some 11% of the entire American labor force didn’t show up to work. But nobody wants to be one of the two-per-hundred who drop dead. So, they avoid public places. They call in sick from work. They don’t go shopping. The U.S. economy only grows by about 2% per year. But that’s with all the switches on. Now, imagine the shopping malls are shuttered. Imagine there are no football games. Imagine that people refuse to go to work at all… or refuse to board an airplane… …What would happen to airline stocks? To retailers? To restaurant chains? Imagine that the whole economy is locked down, like much of China. Then what? Sales, profits, earnings – all collapse. Imports, exports… restaurants, movie theaters, bus stations – all empty out… airports, too. | Recommended Link | Trump's New 5G Plan Is Opening The Flood Gates The Trump administration just unveiled a new 5G FAST plan… Trump's 5G plan is opening the flood gates to 3 million new jobs, $12.3 trillion in economic growth, and a brand new 5G device. One of the world's top angel investors – a tech genius named Jeff Brown believes the company behind this device is the Number One Tech Stock of 2020, and it will go from $0 to nearly $100 billion in sales – this year. Warning: This presentation may be banned at any moment, watch now before you lose your chance for good! | | | | What you have then is not just a setback; it’s like a depression. CNN: The coronavirus continues to spread, and there are signs that some of the world’s top economies could slide into recession as the outbreak compounds pre-existing weaknesses. It’s those “pre-existing weaknesses,” that we’ve been writing about in these diaries. But the stock market is priced as though there were no weaknesses at all. Or to put it another way, there are so many pre-existing weaknesses that any infection is likely to be fatal. That it is what it was like in 2000… or what it was like in 2008. “Like” is not as precise or as reliable as “is.” But in love, war, politics, and economics… it’s the best we can do. As the lawyers say, if it looks like a duck, if it waddles like a duck… and it quacks like a duck… dammit… it is a duck. Whether this is a duck, we don’t know. But we’ll keep the orange sauce at-the-ready. Stay tuned. Regards, Bill Like what you’re reading? Send your thoughts to feedback@bonnerandpartners.com. FEATURED READS Federal Reserve Advocates for More Government Intervention
Fed Governor Lael Brainard said last week that the government should commit to aggressive economic measures during the next recession. But longtime Diary readers know this will only bend an already twisted economy… and give the Deep State more power… Tom Dyson Is Back on the Road
For two years Tom Dyson traveled with his family around the world, studying the global economy to report back to you. He’s now back on the road and his first stop is Nicaragua. Follow his travels here… MAILBAG Dear Readers are concerned about America’s economic, military, and political ills, following Bill’s brief political discourse in “Lions Led by Jackasses”… Dear Mr. Bonner, I love the subtle implication in your comment, “I would vote for a Republican if I could find one.” I'm a Democrat and have voted for very few Republicans, but I could vote for an Abraham Lincoln Republican. – Paul S. It's apparent to me that we must keep expanding the amount of debt/money in our system in order to keep failure at bay. Spending on the military is a reliable way of accomplishing this, as would be social welfare spending. The burden is borne by those who fail to get paid in the scam. It only ends with defaults at this point, but who knows how long dividing the nation’s wealth and handing over a portion to these cronies can continue. By this point, everybody looks to politics to get their share, but you know, somebody has to do the actual work for all this good stuff to show up, whether they be Chinese or Americans. The real problem for me is that without default all these evils of society must continue to be fed. Still, things can only get worse for so long. Or better if you're on the other end of the thing. – Mike R. Sadly, the Deep State has taken over and we have over 900+ military bases around the world. The complete opposite of what the Founding Fathers wanted. The amount of waste and expense in the military is criminal. But, in the politics of Washington, D.C., the criminals get rewarded. I don't see an end to it. Batten down the hatches. – Kevin O. Are military and social welfare the only ways to keep the U.S. afloat at this point, as Mike believes? Is the Democratic party visionless, like Henry thinks? Write us at feedback@bonnerandpartners.com. IN CASE YOU MISSED IT… Where Have All The Huge Stock Gains Gone? It’s nearly impossible to make huge gains in the regular stock market anymore… Most people simply don’t realize why. But the fact is, there are fewer than half the number of publicly traded companies today than there were 20 years ago. And there are less than half the number of IPOs there were 20 years ago… So fewer small companies to ride for big gains as they grow. It’s because companies stay private much longer. They just don’t need to go public. But there is still one small subsector of the tech market pulling in massive gains under the radar… A subsector where companies still go public at low valuations and skyrocket higher right out the gate. And a rocket scientist named Jeff Brown has discovered a way to find the best of these companies with stunning accuracy using a proprietary algorithm. It has already uncovered dozens of incredible, once-in-a-lifetime gains like 494%… 617%… 884%… 1,008%… 2,293%… 6,367%… even 11,764%. He’s never shared this discovery before… and the only place in the world to learn about it is right here. 
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