(23 March 2020) Checks and balances, yes. Effective government, not so much. US politics has once again revealed its dysfunctional side amid the coronavirus crisis as the Senate has failed for a second time to pass an aid package. On Monday, Mitch McConnell’s Republicans (pictured here) and Chuck Schumer’s Democrats could not find a compromise to pass the aid package which would provide assistance to individual Americans and corporations who are suffering financially from this unprecedented shutdown of economic life. This legislative failure caused stock markets to extend their historic decline, despite the Fed promising unlimited loans and asset purchases before the market opened.
Today’s decline was evidenced through two simultaneous malefic combinations. The Sun and Mercury aligned with Rahu, the North Lunar Node, while Mars conjoined Pluto in the first degree of sidereal Capricorn. Both are bad influences on collective sentiment, and together they provided enough negativity to take stocks to new lows in this huge February-March decline that has seen stocks fall by more than 30%.
The main components to the decline are still active. As I noted back in January, the conjunction of Saturn and Pluto had a very ominous quality which was made more more dangerous since it occurred in the first degree of Capricorn. As a rule, sign changes involving any malefic planets are usually magnified in their impact.
As it turned out, January only marked the beginning of the coronavirus pandemic in China while most stock markets outside Asia managed to stay buoyant until February. To be honest, I was surprised when US stocks rallied higher in early February after a brief dip in late January. However, the situation worsened as Saturn conjoined its planetary node at 4 Capricorn with Pluto still very nearby in late February and early March. In retrospect, the Uranus-Rahu alignment likely also played a role in the decline, possibly in terms of its speed and suddenness.
Financial markets are likely to remain volatile for a bit longer as Mars will conjoin Saturn early next week. Some additional downside is therefore quite possible at that time. However, we should note that the rest of this week could see some upside as bullish Jupiter (29 Sagittarius) conjoins Pluto (0 Capricorn). Pluto often amplifies the planets it is associated with so a large gain is quite possible in the coming days. Also we can see that Venus will form a favourable 120 degree angle with Jupiter-Pluto later this week so that should also translate into some gains.
In other words, it seems likely that the Senate will finally get its act together and pass this bill. What happens with the virus is another matter altogether and I’m afraid I don’t have any quick answers. Even if the case numbers and death continue to grow, stocks are likely to bounce anyway in the hope that the economy can recover eventually. Just when that recovery may occur is unclear, however. I hope I can provide some insight on that question in the near future.
In the meantime, let’s all stay safe and help each other try to make the best of this strange situation we all find ourselves in.
For more details,
These forecasts are usually posted weekly.
You can be notified of new posts if you follow ModernVedAstro on Twitter.
Please note that this is a more general and much abbreviated free version of my
investor newsletter which can be subscribed to here.
Please read my Disclaimer
Market forecast for week of 16 March 2020
Market forecast for week of 9 March 2020
Market forecast for week of 2 March 2020
Market forecast for week of 24 February 2020
Market forecast for week of 17 February 2020
Market forecast for week of 10 February 2020
Market forecast for week of 3 February 2020
Market forecast for week of 27 January 2020
Market forecast for week of 20 January 2020
Market forecast for week of 13 January 2020
Market forecast for week of 6 January 2020
Market forecast for week of 30 December 2019
Market forecast for week of 16 December 2019
Market forecast for week of 9 December 2019
Market forecast for week of 2 December 2019
Market forecast for week of 25 November 2019
Market forecast for week of 18 Nvoember 2019
Market forecast for week of 4 November 2019
Market forecast for week of 28 October 2019
Market forecast for week of 21 October 2019
Market forecast for week of 14 October 2019
Market forecast for week of 7 October 2019
Market forecast for week of 30 September 2019
Market forecast for week of 23 September 2019
Market forecast for week of 16 September 2019