Stockopedia comments on recent recovery6 Apr 2020 15:48
RAZORSEDGE - optimistic - for you!
EXTRACTS...
Experienced voices in the investing community have been cautious about the recent recovery, viewing it as a temporary reprieve before the next leg down.
The main factor is clearly the duration of lockdown, and the extent to which economic activity can normalise in the weeks/months ahead.
There are some signs that the panic might recede.
Remember that the main argument for lockdown across Europe has been to prevent hospitals from becoming overcrowded and overwhelmed. But if recorded cases and deaths are stable in France, Italy and Spain, and the overall trend has been tamed, that might help to inspire the confidence needed for a little bit of risk-taking.
I don't think anybody expects an immediate return to every aspect of normal life. Few political leaders will want to be responsible for a secondary surge of infections and deaths. The recovery won't be easy. But a gradual easing of the rules is becoming more likely, as the argument strengthens for the healthy majority to get back to work.
Anyway, this is why your shares up today - the rate of infection is weakening in several countries, and starry-eyed investors are starting to price in the end of total lockdown, sooner rather than later.
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