It is raining bad news and hailing maddening figures. But on the stock market side, we are currently talking about a “rally”. Yes, a bear market rally - “Bear Market” - certainly but a rally all the same. From the low point reached, after a spectacular plunge on March 23, the Dow Jones index, for example, rebounded by more than 30%. Since the beginning of the year, the American market (S&P 500) has lost “only” 15%.
Read also: On Wall Street, the worst quarter since 1987 for the Dow Jones
When stocks go up while everything else, all indicators, morale, activity or profit forecasts, go down, there are two possible explanations. One is optimistic: investors, whose job it is, are one step ahead. The prices they give to stocks today suggests that they are ultimately anticipating a fairly rapid rebound in profits, and that they are therefore betting on a V-shaped growth scenario.
The other explanation is less glorious: the disoriented markets rely on central banks and believe
This article is for subscribers only. You still have 78% to discover.
Subscribe: € 1 the first month
cancellable at any time
Enter your emailAlready subscribed? Log in
