Can the Fed save the S&P 500?
April 27, 2020

Can the Fed save the S&P 500?

Paul Jackson. Global Head of Asset Allocation Research and András Vig. Multi-Asset Strategist.

The further we get into this lockdown, the clearer is becoming the extent of the economic fallout and it is not pretty. But major equity indices suggest it will be a normal recession. Why the disconnect?

The contrast continues: on the one hand, estimates of the economic damage occasioned by the fight against Covid-19 darken by the day; on the other, equity markets are behaving as though the end of a mild recession is around the corner.

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