Why certain stocks are able to beat #CovidPandemic, #Lockdown et al across the markets

Why certain stocks are able to beat #CovidPandemic, #Lockdown et al across the markets in US/EU/APAC ?? ??

Why #BentchmarkIndices are not factoring-in #GDPForecasts and what they call #Macros etc etc ?? ??

**** The content below is extremely sensitive and might create depression/anger/anxiety !! My apologies in advance but this is probably the fact ????

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It’s a view getting a wider airing -- that job cuts are setting the stage for a swift rebound in profits once the economic activities start showing some recovery. That’s a big “IF,” of course, as any improvement in profitability would have to offset the demand destroyed by lost jobs. But conceivably, a leaner cost structure will allow companies to pocket more earnings from sales once growth revives and that is becoming evident from some Q2 results already published in US/India !! #WFH are helping many sectors saving costs like Travelling Expenses while #PentUpDemand is helping some cos to slash marketing/promotional expenses. #ITMajors are reducing strength of their bench while manufacturing companies are trying to manage the show with temporary workers replacing permanent (#OffPayroll) employees left job location in fear of Corona.

HR consultants are getting verbal indents of recruiting skilled white collar employees at 50-60% pay cut according to sources. This reminds me the period of closure of HSBC in Hyderabad when many consulting firms recruited laid off mid to senior level employees at throwaway CTC.

"While this theory can sound deaf to the suffering of millions of jobless/laid-of folks, there’s precedent, including the last recession, which came before an 11-year bull market. Dehumanization is already an inescapable narrative of the current rally, one dominated by asset-light, algorithmically optimized megacompanies that are soaring even as the virus lays low the economy.

#MorganStanley stock strategist Mike Wilson recently raised the idea that a slow pace of rehiring could spur improvements in what is known as operating leverage and fuel a faster-than-expected earnings rebound. #Bloomberg Intelligence strategist Gina Martin Adams says that while job cuts mean lower consumer spending, they also help facilitate a swift profit recovery."????

“It does sound a little callous, but it always sounds that way in recession, and it is reality -- companies do cut costs to dig out of earnings recessions,” Adams said. “The reduction in expenses contributes to margin expansion for companies, which should allow for a stabilizing earnings outlook.” ??

**** Disclaimer : somewhat influenced by the article of #LuWang in #Bloomberg ????

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