After once of the best stock market weeks in many years and news that the COVID-19 crisis may be peaking, one could wonder if the market is going to return to previous levels.
The idea is that the country may have flattened the curve. Or have we? China is now reporting increasing number of cases and the push to open the country while many are still ill leads one to wonder if all the social distancing will be in vain and cases will increase again.
The Federal Reserve Bank of Minneapolis President Neel Kashkari said that the U.S. economy could face up to 18 months of rolling shutdowns as the outbreak recedes and flares up again.
So, will this mean the market will crash again? Could it go lower? Is this going to a point that investors take action and “time the market”?
China was at the forefront of this crisis and may bear watching to see if what happens there will be repeated in the United States. Same with Italy, it may bear worth watching that country’s statistics to gauge what might happen here.