Market Review and Trends
Here’s the V-shape rally
By betterspider  •  June 7, 2020
There’s been relatively good economic data coming out especially on US unemployment statistics. Enthusiasm for the gradual reopening of economies worldwide plus unprecedented government stimulus has also led to a resurgence in risk taking appetite among investors. The momentum for the recent stock market rally has been strong, and the S&P 500 has crossed its 200 day moving average, a traditional signal of a long-term uptrend. The European Central Bank has also agreed to spend an extra 600 billion Euros on emergency bond purchases, ramping up stimulus efforts to help the eurozone weather the coronavirus crisis. With this crazy amount of stimulus, monetary easing and supportive government policies, we should see interest rates remaining low for a while. To recap, following the 2008-2009 financial crisis, interest rates hovered at or near 0% for close to 7 years. Investors will now struggle to find yield – REITs, stocks, high yield bonds will be poised to do well in this low rate environment with cost of financing this low....
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By betterspider
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