It’s Just Day 22 of CoronaCrash, and It’s Already Such a Mess | Wolf Street
The rug is getting pulled out from under stocks by numerous factors. On top of the list is the simple fact that the historic stock market bubble and the most exuberant stock market euphoria in my lifetime, when stocks are the most precarious, collided with the coronavirus.
After this started to wreak havoc and stocks began to crash, two other huge factors came into play: One, share buybacks have mostly come to a halt as companies are now struggling for liquidity in an effort to survive this. And two, for the same reasons, dividends are getting cut brutally, all around.
The latest to announce suspending its dividend “until further notice” was Boeing. This came as a surprise to no one; the company is in an existential crisis. Boeing made the announcement on Friday evening to keep it as far away from stock trading as possible.