Equity markets are retreating for a fourth consecutive day as dreadful economic data continues to be released. Initial jobless claims for the past two months are near 37 million. To put this in perspective, we gained 22 million jobs over the just-ended 11-year economic expansion, which was the longest on record. However, this horrendous news was expected, and investors have been largely looking past bad economic data and to a future economy full of trillions of dollars in fiscal stimulus and record-low borrowing costs. Optimism was relatively high and a V-shaped—or quick—recovery was being priced into markets. The recent market weakness isn’t due to the economic data but other factors, which we think point more to the slower U-shaped recovery that we have been anticipating.
For more insights, download our full commentary.
Want more insights like this, sent straight to your inbox?
Subscribe to email updates from Cetera and be well informed about what’s happening within the market and the financial services industry overall.