MACROSCOPE No. 35: Only a V-shaped economic recovery will do now

The Nasdaq’s 45% surge from its March 23 low is the epitome of a V-shaped rebound (Figure 1). Overly optimistic investors who are banking on a similar economic recovery may be in for a disappointment.
There are a growing number of signs that risk appetite is back in a big way, judging by the ease with which negative news is being dismissed. On June 1, for instance, stocks rose despite a weekend of frenzied rioting in the U.S. and news that Gilead Science’s remdesivir – currently the only FDA-approved treatment for severe cases of Covid-19 – showed only a limited benefit in a large trial involving patients with moderate forms of the disease. Click here to read the rest of Macroscope No. 35.