How could the US market have risen from the September lows if we are in a recession? The answer is...
How could the US market have risen from the September lows if we are in a recession? The answer is that it had already discounted the recession and is now seeing signs pointing to recovery. Through late August and beyond the terror of 11 September, the equity market discounted the first US slump since 1990. With a 30% fall in the broad S&P 500 to 21 September from its 2000 peak, the market had reached recession-like valuations compared to rock-bottom bond yields. Since then, the market is up 17%: what gives? The key point is that, contrary to the bears, the US consumer is far from ...
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