CLA Article: What Is the Market Currently Trying to Tell Us?

Wednesday, May 13, 2020 8:05 AM | Anonymous
Market Insights

Looking for a ray of hope in the market? Recent trends could suggest a V-sh
COVID FINANCIAL MANAGEMENT

Market Insights: What Is the Market Currently Trying to Tell Us?

By Dean Bosco
5/8/2020

Key insights

  • Is the market shaping up for a V-shaped recovery?
  • The market seems to care more about the duration of any financial event than the depth.
  • Investors may be able to lean into discomfort and strategically position themselves for the future.

Across the country, some states are making moves to turn on the lights and proclaim, “We are open for business!” even though much uncertainty remains about COVID-19 and its ongoing effect on the nation’s health and economy.

Recent reports suggest that though Coronavirus cases are declining in hot spots like New York, they are on the rise in other parts of the country.

However, Wall Street investors don’t seem to be particularly concerned about how it will all shake out in the coming weeks, months, and years to come. Perhaps this is because the market cares more about the duration of any financial event than the depth.

Based on the past couple of weeks, some expect we will see a quick V-shaped market recovery. The initial cascade of selling seems to be over and those who wanted out are out. Now the market appears to be attracting discount buyers.

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