5.18.20 Downside Risk Remains
Stocks fell last week, and many blamed the drop on high stock valuations, Federal Reserve Chairman Jerome Powell’s gloomy outlook, and rising US-China tensions. Perhaps investors also are increasingly skeptical about prospects for a smooth V-shaped recovery. Regardless, stocks may have been due for a pullback after gains in late March through April and could potentially have further to fall.
Three Big Stories
We think the three biggest stories for investors in the last week were: 1) elevated stock market valuations, 2) Federal Reserve (Fed) Chair Jerome Powell’s gloomy outlook, and 3) rising US-China tensions.&nb... Read more