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Friday View: Markets Tread Water

Friday View: Markets Tread Water

April 24, 2020

While volatility continued this week, market movement was general flat in total. This, despite that fact that oil prices hit record lows amidst a huge over-supply. For the economy to be hit with two event-driven shocks at the same time, it leaves little doubt that volatility will continue in the coming weeks and that more downside pressure (in the short-term) would not be a surprise. That said, PIMCO laid out their case for the eventual recovery--an interesting read with the premise of a "U-shaped" recovery. What they describe as a phased recovery certainly makes sense given the likely phased-in re-opening of the economy.

I have had some questions from clients about the CARES act, and I believe there is some incorrect information being passed around.  I am including an article from Ed Slott's team that counters some of the misinformation out there.

Here are the links to what I'm reading today:

A Phased Market Recovery as Liquidity and Fundamentals Return -- PIMCO

4 Cares Act Misconceptions -- Ed Slott & Company