Markets have been hard hit due to the coronavirus pandemic and its associated disease COVID-19. Interestingly, the stock market seems to have started recovering. This is despite the fact that many market watchers have predicted an imminent recession.
This was raised in a tweet by Kristina Partsinevelos, a journalist with Fox Business, who tagged Tom Lee of Fundstrat. Lee, a researcher and market analyst is known to have uncanny insight of the markets.
Partsinevelos wanted to know why the stock market is showing signs of recovery despite the expectation that another recession was imminent. This is considering the fact that we are in a healthcare crisis. She also wondered why the consumer reaction shows more resilience than is expected citing what she called V-shaped fiscal policy.
Responding to the assertion, Tom Lee stated that the market reacts how it deems appropriate based on extenuating circumstances.
we cannot ‘tell the market what to do’ and if stock recover back to 2,793 (50% retrace), the market is telling us crisis end is faster than expected— Thomas Lee (@fundstrat) April 7, 2020
cc: @KristinaParts @FoxBusiness https://t.co/JSbOKfqZn7
“We cannot ‘tell the market what to do’ and if stock recovers back to 2,793 (50% retrace), the market is telling us crisis end is faster than expected,” said Lee.
Meanwhile the recovery has had impact cross markets which also reflected on the coin market with Bitcoin presently trading at $7,339, showing an upbeat scenario contrary to what was experienced in mid March when the asset fell below $5000.