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Fear of second wave and risk of lockdown


On June 10th, the Fed announced to make benchmark interest rates close to zero and continue to pour billions of dollars in stimulus.

The Fed’s goal is maximum employment and price stability. However, the speed of the employment recovery is questionable.

Tens of millions of unemployed people won't get their jobs back overnight. By the end of 2022, the Fed predicted unemployment rate would drop to 5.5%, which is still well above the rate before Covid-19 started.

The decline in the bottom-up EPS estimate recorded during the first two months of the second quarter was larger than the five-year average, the 10-year average, and the 15-year average.



Investors have to be very careful here from now. The market reacted with very mixed results.

$SPX500 closed lower but $NSDQ100 was driven by FAANG stocks, but underneath, there are many stocks performing poor.