Markets are due for another correction
It looks good… on paper
One thing that this Covid-19 crisis has done, is make us all irrational, panic-prone, and reactive. Instead of following our life guidelines or Principles as Ray Dalio would say, most of us have thrown out our book of commonly accepted practices and replaced it with a day-to-day struggle to figure out which way the market was going to go over the next 7-hour session.
Both bulls and bears have lost this battle, as the markets tanked early in March, euphoria amongst the bears was only equaled by the anger of the bull. Eventually, it all reversed in April for the fastest V-shaped recovery in history. Unfortunately, I don’t believe it’s here to stay.
The economy will take two years to recover fully
That’s hoping we don’t get a second wave of the virus in the fall. It would put even more strain on our already hurt economy. It is unheard of in history to have the whole world shut down for half a year. We are still not sure of the impact it will have and we’ll only know after the facts.
One thing is sure, unemployment quadrupled over the planet in a matter of months. Some of these jobs will be coming back, albeit slowly. It’s always easier to fire than hire. Some industries will need to regain customer confidence…
