The Great Disconnect?
by Stephen Nguyen, CFA
There are few certainties in markets and economies and with most countries globally facing what could be the worst economic collapse in the post-war era, it is surprising to see markets and most risk assets continue their remarkable rebound. The shape of the recovery in risky assets certainly looks V-shaped today, as most markets have posted gains of around 30% since bottoming near the end of March. Is this a true reflection of what is going on in the underlying economy or is there a big disconnect?
- Estimations now show that 24 of the 50 US states have a R value over 1
- Oil prices rose for the 7th week out of the last 8 as OPEC+ confirmed output cuts
- Brent crude rose 8.9% ending the week at $42.2 a barrel
- Gold rose 0.8% ending the week at $1743.9 an ounce