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.
This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of IA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
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