{"id":168676,"date":"2020-04-14T11:45:38","date_gmt":"2020-04-14T15:45:38","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=168676"},"modified":"2020-04-14T11:28:40","modified_gmt":"2020-04-14T15:28:40","slug":"stocks-are-on-fire-but-a-second-coronavirus-wave-isnt-priced-in","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/04\/stocks-are-on-fire-but-a-second-coronavirus-wave-isnt-priced-in\/","title":{"rendered":"Stocks are \u2018on fire\u2019 \u2013 but a second coronavirus wave isn\u2019t priced in"},"content":{"rendered":"
April 14, 2020<\/div>
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By George Prior<\/strong><\/p>\n

U.S. stock markets might be \u2018on fire\u2019 as earnings season begins \u2013 but Wall Street has not priced in a second wave of coronavirus, warns the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The warning from deVere Group\u2019s chief executive Nigel Green comes as the S&P 500 gained over 2 per cent in early trading, following gains in European and the Asia-Pacific markets.<\/p>\n

Mr Green notes: \u201cThis week, with earnings season underway, we are going to see just the beginning of how corporate America and Europe have been hit by the coronavirus pandemic. The results are likely to be dismal and forecasts for the rest of the year can be expected to be revised down.<\/p>\n

\u201cHowever, investors are overlooking this. Instead, they are clinging on to relatively positive economic news from China, hints that some major lockdowns in Europe and elsewhere are being eased, and that confirmed cases are falling \u2013meaning economic activity can be revived.\u201d<\/p>\n

He continues: \u201cIt\u2019s truly astonishing that as global economic growth forecasts are looking bleak and most countries are battling potentially one of the worst downturns in a generation, the markets are on fire and trading as though these are normal times.<\/p>

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\u201cThey are not normal times. We are in unchartered waters. This isn\u2019t the time to be complacent as I doubt the bear market is over. We shouldn\u2019t call the bottom yet.<\/p>\n

\u201cIt would appear that the financial markets are oblivious to the obvious and serious financial threat of a potential second wave of the coronavirus.\u00a0 Alarmingly, this does not seem to have been priced in.\u201d<\/p>\n

Mr Green goes on to add: \u201cThe markets\u2019 bullish sentiment during this mass disruption and dislocation would be baffling enough, but there are also other headwinds on the horizon.\u201d<\/p>\n

These, he notes, include the U.S. Presidential election, the threat of a no-deal Brexit, and the longer-term inflation risks.<\/p>\n

The deVere CEO observes: \u201cWe can expect markets to remain volatile in the short-term.<\/p>\n

\u201cMany savvy investors will be riding the wave of volatility to build up their portfolios through lower entry points and seeking value and decent returns in order to grow their wealth. Why? Because history teaches us that over the longer-term the performance of stock markets is fairly predictable: they go up.\u201d<\/p>\n

Nigel Green concludes: \u201cThe markets are growing more positive about the Covid-19 crisis.<\/p>\n

\u201cBut to sidestep taking a potentially massive hit, investors must avoid complacency and emotional decisions through solid financial strategies.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior U.S. stock markets might be \u2018on fire\u2019 as earnings season begins \u2013 but Wall Street has not priced in a second wave of coronavirus, warns the CEO of one of the world\u2019s largest independent financial advisory organizations. The warning from deVere Group\u2019s chief executive Nigel Green comes as the S&P 500 gained […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-168676","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/168676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=168676"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/168676\/revisions"}],"predecessor-version":[{"id":168677,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/168676\/revisions\/168677"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=168676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=168676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=168676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}