5/26/20 Power Five

1. Hertz Files for Bankruptcy – Blame Covid all you want, but refusing to pivot and change your business model after piling $19 billion of debt and failing to make money the last four years is a recipe for disaster.

2. How Do You Value Stocks When Earnings Plummet to Zero – Barry Ritholtz on a overheated market, “Whether markets are too far ahead of themselves or not will be determined by events: How quickly a treatment and/or vaccine for Covid-19 is discovered; how successfully the re-opening process goes. Lastly, how soon the consumers – aka the demand side of the economy – becomes comfortable with going out, spending money, and generally returning to their prior consumptive ways.

3. Will Museums Survive Without Fancy Galas? – No paying visitors, likely a crunch in government grants going forward, and now no in person fundraiser…do we need a bailout for museums?

4. Why the Covid Death Rate Is Almost Certainly Too Low – When states play by different rules, we get mismatched data.

5. The Painting Behind the Door – “A stolen de Kooning was found in the New Mexico home of a pair of Jewish retirees. It wasn’t their only secret.”