Investors are discounting a short, sharp V-shaped recovery in the US economy and in corporate profit...
Investors are discounting a short, sharp V-shaped recovery in the US economy and in corporate profits. This optimism is founded on the significant easing in monetary and fiscal stimulus delivered by the US authorities, which has been further augmented by a sharp fall in the oil price. Any resultant recovery in the US is expected to quickly spread to the global economy. The markets seem to be 'priced for perfection'. Their recent action is very reminiscent of the end of 1999. High beta tech stocks are leading the markets in a powerful liquidity-fuelled rally, with investors climbing the 'w...
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