Despite the unprecedented rebound the past couple of months from the March lows, the stock market and economy faces lots of uncertainty in the coming months. First, you have the IMF giving worse economic projections than originally thought. Then you have the rapidly rising COVID-19 cases in the US and elsewhere across the world. It's very obvious that the virus is not contained and that a second shutdown is imminent. Most importantly, the Fed has actually not done much with its repo operations. Despite boldly claiming "unlimited QE" it seems they are being rather conservative with their repo operations, with them having reduced the purchases in corporate bonds significantly in the past couple of weeks. Therefore, I think a revisitation of the March lows is inevitable in the coming weeks, as COVID-19 cases rises, and a second shutdown commences.
Submitted June 24, 2020 at 10:22PM by LUCKIN_INVESTOR https://ift.tt/3hZM9ad
