We are in a global recession. Read our CIO’s latest insights about markets and what’s next.
For the last six months we have stressed in this publication that “caution continues to make sense.” Prior to the recent volatility we wrote that “equity valuations remain high…and investor optimism and complacency remains high.” In addition, we noted that “a sell-off that relieves optimism and reduces high valuations would be an attractive entry point for investors.”
Usually sharp market drops are caused by factors no one can predict, and this time it is the Coronavirus called COVID-19. The ultimate outcome of the virus is uncertain, and that is exactly why the market has gone down over 10% in just one week.