There are some signs of investor capitulation. Put differently, investors are expecting the worst, and therefore the worst may already be priced into risk assets. If this is correct, any hint of better than expected Q2 earnings or moderating inflation could cause stocks to rally. The bar is set so low that it won’t take much better-than-expected news for markets to move up.
Have markets bottomed?
Have markets bottomed?
Have markets bottomed?
There are some signs of investor capitulation. Put differently, investors are expecting the worst, and therefore the worst may already be priced into risk assets. If this is correct, any hint of better than expected Q2 earnings or moderating inflation could cause stocks to rally. The bar is set so low that it won’t take much better-than-expected news for markets to move up.