The Wall Street Journal - 28.03.2020 - 29.03.2020

THE WALL STREET JOURNAL. **** Saturday/Sunday, March 28 - 29, 2020 |B

BoeingCo. is set to emerge as a

big winner of the coronavirus stimu-

lus package, even if the aerospace

giant declines to seek direct tax-

payer help.

The company had lobbied for at

least $60 billion for itself and its

vast supplier network to blunt the

blow of the pandemic that has para-

lyzed global airline travel and re-

duced demand for passenger air-

craft.

The prospect of canceled orders

and airlines unable to take new

planes added to the pressure on Boe-

ing from the continuing crisis

around the grounding since last year

of its 737 MAX jets, which has al-

ready sent its debt soaring as it bor-

rowed to compensate customers and

support suppliers.

The $2 trillion stimulus bill ap-

proved by Congress includes much

of what it wanted: billions of dollars

available for it and its supply chain,

and billions more to its struggling

airline customers to stay in business.

“It’s important that the supply

chain gets relief,” said Eric Fanning,

chief executive of the Aerospace In-

dustries Association, a trade group

that counts Boeing among its mem-

bers. “The most effective way to in-

ject support is through its custom-

ers.”

Whether Boeing will tap into

stimulus money directly remains to

be seen.

Lawmakers set aside $17 billion in

loans and loan guarantees directed

at companies deemed essential to

national security. Congressional offi-

cials and a senior U.S. aviation in-

dustry executive said the carve-out

was partly aimed at Boeing.

Tapping that $17 billion pot

would come with strings that Boeing

Chief Executive David Calhoun has

rejected. In particular, the loans

would come with a condition that

Please turn to page B

BYANDREWTANGEL

ANDDOUGCAMERON

Bailout Aids

Boeing Even

If It Doesn’t

Tap Funds

TheCurefor

Panic Attacks

The dangers lurking in the market can be hidden or delayed,

but never eliminated. For investors, slumps are a chance for

introspection–and, sometimes, new opportunity.

Everyone thinks they’re a ge-

nius in a bull market, but it’s

only when prices head south

that some people really stand

out from the crowd.

As odd as it sounds, the av-

erage investor is woefully below

average. Compared to a robot

who might invest through good

and bad, ignoring newspaper

headlines, a fallible human can

end up with a lot less money on

retirement day due to greed

and fear. Knowing how to han-

dle fearful times like these offer

the best opportunity to avoid

lagging behind the market.

Sure, some investors will

claim they saw the coronavirus-

induced bear market coming,

just like there are people who

say they sold ahead of the

housing bubble or the dot-com

crash. Maybe some of them are

even telling the truth. But there

were plenty of excuses to take

profits over the past decade

during what became the longest

bull market in history—the

trade war, the European debt

crisis and ludicrous unicorn val-

uations, to name just a few. Up

until a month ago, acting on

them would have cost you.

Trying to pick the bottom of

a bear market is even more haz-

ardous to your wealth. Being

what seems like a long way from

the top doesn’t mean you aren’t

still just as far from the bottom:

A market that has lost half of its

Please turn to page B

How I Learned to Stop Worrying

And Love the Bear Market

Bounce Back

S&P 500 annualized returns

between bottom of bear market

and end of recession

*1928 through 2019

Note: Dates listed are the final months of bear markets

Source: S&P Dow Jones Indices

Long-termannualized

return:9.7%*

June 1932

June 1949

Oct. 1957

May 1970

Oct. 1974

Aug. 1982

Oct. 1990

March 2009

50.4%

58.

28.

56.

77.

123.

56.

94.

THE INTELLIGENT INVESTOR|JASON ZWEIG How could a microscopic organism

destroy nearly $15 trillion in global

stock-market wealth in five weeks?

Until recently, many investors

believed central banks and other

policy makers had repealed the

business cycle and that making

money in the stock market was something you

could take for granted—in much the same way

that science and technology seemed to have

beaten back diseases that had been the scourge

of humanity for millennia.

Maybe investors a century ago and more had a

wiser view. They believed the world was gov-

erned by unseen, omnipresent powers that could

be appeased but never controlled—and that fi-

nancial panics were a form of divine retribution

for the sinful excesses of prosperity.

We shouldn’t regard market panics as quaint

artifacts from the days of ticker tape and trading

by telephone. Rather, they are forces that can be

Please turn to page B

Sources: Dow Jones Market Data (recessions ended 1933, 1938, 1975); FactSet (recessions ended 1982, 2009); National Bureau of Economic Research (recession durations)

0days 200 400 600 800 1,000 0days 200 0days 200 0days 200 0days 200

TRADINGDAYSSINCESTARTOFRECESSION

The downturn of 2020 could rival market pullbacks during past contractions but is far from the lows reached during the Great Depression.

S&P 500 performance This year During longest recessions since 1929

Kara Dapena/THE WALL STREET JOURNAL



• 9 

–

–3

%

Great Depression

ended March 1933

43 months

2020

year to date

March 1975

16 months

November 1982

16 months

June 2009

18 months

June 1938

13 months

HEARD ON THE STREET|SPENCER JAKAB

MICHAEL HADDAD

We know from

history, over time,

our country perse-

veres and its markets

rebound...Through-

out this downturn,

we are reminding

our clients that panic

is not an investment

strategy and that

trying to time the

market is futile.

—Charles Schwab Corp.

CEO Walt Bettinger

“

Some of Wall Street’s smartest

minds on what’s coming next

B4-

EXCHANGE

At a Distance

Intensive-care units

fast-track remote

technology B

Crash Course

HP’s new CEO gets

up to speed in

a time of crisisB

BUSINESS|FINANCE|TECHNOLOGY|MANAGEMENT

DJIA21636.78g915.39 4.1% NASDAQ7502.38g3.8% STOXX 600310.90g3.3% 10-YR. TREAS.À19/32 , yield 0.744% OIL$21.51g$1.09 GOLD$1,623.90g$26.20 EURO$1.1139 YEN107.

The Dow Jones Industrial Average

posted its biggest weekly gain since

1938, paring some of the losses of

recent weeks, as lawmakers agreed

to the largest economic-relief pack-

age in U.S. history in response to the

coronavirus pandemic.

Investors have been on a roller-

coaster ride as attempts to curb the

outbreak constrain economic activity

and policy makers work to cushion

the blow. Major U.S. stock indexes

posted double-digit gains for the

week—with the Dow surging 13% and

the S&P 500 climbing 10%—but re-

main down more than 20% in 2020.

After a furious three-day rally

earlier in the week, stocks pulled

back Friday. The blue-chip index fell

915.39 points, or 4.1%, to 21636.78.

The S&P 500 dropped 3.4%, and the

Nasdaq Composite declined 3.8%.

Investors looking for government

spending measures to soften the

economic damage watched through-

out the week as legislators agreed to

and passed a $2 trillion stimulus

package. The legislation, which Pres-

ident Trump signed Friday, is the

largest economic-relief package in

U.S. history and would extend aid to

many Americans through direct pay-

ments and expanded unemployment

insurance. A record 3.28 million U.S.

workers applied for unemployment

benefits last week, nearly five times

the previous record high.

Earlier in the week, the Federal

Reserve signaled a wide-ranging ef-

fort to help the U.S. economy by ex-

tending loans and purchasing hun-

dreds of billions of dollars in

government debt.

“The one-two punch is impor-

tant,” said Mike Wilson, chief U.S.

equity strategist and chief invest-

ment officer for Morgan Stanley.

“What the market is saying is earn-

ings are going to be really bad in the

near term, economic growth is going

Please turn to page B

Dow Ends

Week Up,

Despite

Friday Fall

ByKaren Langley,Avantika

ChilkotiandChong Koh Ping