Investors are way too optimistic about an economic rebound
Aruba, June 24, 2020 – Despite a minor sell-off on Friday, stocks have rebounded from the coronavirus recession strongly in recent months—too strongly, according to research from Vital Knowledge founder Adam Crisafulli, who believes investors are too optimistic about a quick economic recovery and the market is now overvalued.
The market remains “incredibly resilient,” with the S&P 500 still up around 2% last week despite more negative headlines about a resurgence of coronavirus cases.
The default setting for most investors is still to “buy the dip” whenever the market falls, according to Crisafulli, while “FOMO” remains a major theme as well—with many investors fearing they’ll miss out on the stock market’s rebound over the past few months (The S&P is up nearly 40% from its coronavirus recession low point on March 23).
Read more here.Scroll To Top
May 13 - May 15