Forget 2020: stock market optimists look at 2021 for buy signals
PUBLISHED
APR 28, 2020 3:31PM EDT
LONDON/NEW YORK, April 28 (Reuters)- Shrugging off reams of terrible economic data, plunging oil prices and dire corporate results, world stocks have recouped around half of this year's coronavirus-linked losses as investors flip over their calendars to bet on a strong recovery in 2021.
Trillions of dollars in stimulus from governments and central banks, and moves to start re-opening businesses, are contributing to the bounce-back.
The most hopeful sign is the decline in volatility.
Wall Street's fear gauge, the Cboe Volatility Index .VIX as well as the Euro STOXX 50 volatility index .V2TX have steadily dropped over the past month to the low 30s, their lowest level since early March. Both indexes spiked past 80 at the height of the market sell-off last month.
The VIX similarly receded below 40 as the last bull market began in March 2009, following the global financial crisis.
MSCI's gauge of stocks across the globe .MIWD00000PUSis now just 16% off record highs hit on Feb. 19, having recovered more than half of its lost ground.
"What we see is that the market is anticipating a recovery," said Roland Kaloyan, head of European equity strategy at SocGen. "It is already looking at 2021. If you look at sectors, the so- called market darlings in the technology, pharma, luxury goods, all have priced in a V-shape recovery."
Source:https://www.google.com/amp/s/www.na...s-look-at-2021-for-buy-signals-2020-04-28?amp
PUBLISHED
APR 28, 2020 3:31PM EDT
LONDON/NEW YORK, April 28 (Reuters)- Shrugging off reams of terrible economic data, plunging oil prices and dire corporate results, world stocks have recouped around half of this year's coronavirus-linked losses as investors flip over their calendars to bet on a strong recovery in 2021.
Trillions of dollars in stimulus from governments and central banks, and moves to start re-opening businesses, are contributing to the bounce-back.
The most hopeful sign is the decline in volatility.
Wall Street's fear gauge, the Cboe Volatility Index .VIX as well as the Euro STOXX 50 volatility index .V2TX have steadily dropped over the past month to the low 30s, their lowest level since early March. Both indexes spiked past 80 at the height of the market sell-off last month.
The VIX similarly receded below 40 as the last bull market began in March 2009, following the global financial crisis.
MSCI's gauge of stocks across the globe .MIWD00000PUSis now just 16% off record highs hit on Feb. 19, having recovered more than half of its lost ground.
"What we see is that the market is anticipating a recovery," said Roland Kaloyan, head of European equity strategy at SocGen. "It is already looking at 2021. If you look at sectors, the so- called market darlings in the technology, pharma, luxury goods, all have priced in a V-shape recovery."
Source:https://www.google.com/amp/s/www.na...s-look-at-2021-for-buy-signals-2020-04-28?amp
