Depending on which Wall Street titan you ask, the US economy is either sprinting towards a sharp V-shaped summer rebound, or limping towards a more gradual, drawn-out recovery.
In one corner you have Blackstone CEO Stephen Schwarzman, who’s all-in on what he calls a “big V” snap back to economic normalcy in the next couple months.
In the other you have Goldman Sachs CEO David Solomon. While he claims his more sluggish forecast is also V-shaped, he acknowledges it’ll face serious hurdles into year-end and 2021. That outlook jibes with his view that the stock market’s recent rally off lows has gotten overdone, largely because of economic overoptimism.
If these heavyweights can’t come to a clear consensus, it’s no wonder markets have been whipsawed by every new economic-reopening headline, positive or not. And to make matters more confusing for investors, certain sectors and companies have been thrown for a loop by factors not directly tied to an economic recovery.
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Last week, bank shares soared on news a financial-crisis-era regulation had been rolled back, only to plunge the following day after the Fed said it will suspend buybacks and limit dividends across the industry.
Facebook has also been a lightning rod for shifting investor whims. It shed roughly $60 billion of market value across just two days as high-profile advertisers backed away — then climbed sharply once again, with traders seemingly unperturbed.
Confusing times call for clarity, and the Investing team at Business Insider is here to unpack the ever-changing market landscape. See below for our best stories of the week, including a wide array of recommendations, strategies, and tips for navigating uncertainty.
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Source:: Business Insider