Sandpiper Capital’s Quarterly Economic and Market Commentary

July 2020

March saw a severe dislocation in the markets with sellers swamping the system with enough vigor that anyone witnessing it would wonder if there were any buyers out there anywhere. As a result, in a really unprecedented move, governments around the world have been propping up security prices in the expectation that doing so will allow companies to sell stocks and bonds. They’re hoping companies can continue to raise cash (this is the primary function of the securities markets) and avoid the defaults and bankruptcies that would otherwise be inevitable.
It’s too late for Hertz, J. Crew, Neiman Marcus, JC Penney, GNC, Chuck E. Cheese and about 4,000 other companies that have folded this year but survivors have raised over a trillion dollars in the bond market and are selling stock at the fastest pace since 2014. This has been a great strategy for keeping companies solvent. It remains to be seen whether it will be enough to avoid a collapse. I would not want to be one of those buying in these circumstances.

April 2020

January 2020

October 2019

July 2019

April 2019

January 2019

October 2018

July 2018

April 2018

January 2018
October 2017
July 2017
April 2017
January 2017

October 2016

July 2016

April 2016

January 2016

October 2015

July 2015

April 2015

January 2015

October 2014

April 2014

January 2014

October 2013

July 2013

April 2013

January 2013

October 2012

July 2012

April 2012

January 2012

October 2011

July 2011

April 2011

January 2011

October 2010

July 2010

April 2010

January 2010

October 2009

April 2009

January 2009