Did financial markets bottom on March 23?
JPMorgan Chase & Co. says the market has bottomed out and everything has been stabilized because of fiscal and monetary stimulus. Moving forward, anticipate recession-like pricing and nothing less.
Bank strategists led by John Normand wrote in a research note:
“Risky markets should remain volatile as long as infection rates create uncertainty about the depth and duration of the Covid recession, but enough has changed fundamentally and technically to justify adding risk selectively.
Most risky markets have probably made their lows for this recession, except perhaps oil and some EM currencies beset by debt-sustainability issues.”
For the riskier assets, the second quarter might trend higher.
With the Federal Reserve pumping trillions into markets and the federal government passing the historic stimulus plan, the market had better bottomed out!
Others say that the bottom has not happened yet because the coronavirus infection rate has not slowed, investor flows have not bottomed, and there needs to be evidence stimulus is working.
Until either camp is proven right, you may just need to dollar cost average everything.
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