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.

Can the Fed save the S&P 500?

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.

To read on, download the PDF.

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