We’ve Never Been Here Before – And yet…at the same time, we have. The cause may have been different and to be fair, unlike anything we’ve ever experienced previously, but the effect is looking awfully familiar. The economic damage remains incalculable - the IMF projected a global contraction of 3% - for context the world economy shrunk by less than 1% during the GFC of 2008-09. But while still well off highs, the market has again shown its remarkable resilience, now +34% from the lows a mere 3 weeks ago. With the efficacy of the Fed fireworks still in question, the only guide has been the rate of coronavirus infections or deaths – with those seeming to level off, its been enough of a catalyst for the FOMO crowd to pile in. A significant increase in volumes would be a nice accompaniment.
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