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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  • Data as at 26.04.2020, unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

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