Coronavirus: Trump's cure could be worse than the disease
|President Trump was looking for quick fixes and strives to reopen the economy by Easter which could lead to a deeper crash and failure to recover, according to FXStreet’s analyst Yohay Elam.
Key quotes
“The latest quick fix is saying he does not want the cure to be worse than the disease and wish to see churches fill up in Easter. The self-proclaimed ‘wartime president’ seems unprepared for a long battle.”
“It would be more than a delay in beating coronavirus and recovering, but also risks a loss of confidence. Investors would be cautious when reacting to genuine signs of improvement – from falling numbers of new deaths to the removal of lockdowns.”
“The bottom in equities could still be far. Another massive sell-off could be seen. Moreover, the recovery may be a prolonged one – no V, no U, and not even W.”
“A secondary effect may also come from Trump's lower chances of being reelected, pushing Wall Street further down in fear of Democrat-led regulation.”
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.