Harr's view: Why markets are not disconnected from fundamentals
|- Historically, it is not unusual in a crisis that risky assets turn before data rebound. However, what is unusual is the speed of the recovery in US equities. But this is also a very different crisis as the economic rebound is much faster than during previous crises.
- Theoretically and empirically, rising expected future growth rates will lead to stronger equities and tighter credit spreads today.
- The lack of an effect on US stocks of the second wave of the virus reflects that it has not influenced 2021 growth expectations.
- The underperformance of the NOK vs. the SEK during the crisis is influenced by the relative developments in real interest rates and stock markets in the two countries.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.