There is much discussion around whether the recovery from the COVID-19 pandemic will be a V-shaped or U-shaped recovery. In their latest discussion, Sightline’s Paul de Sousa and Warren Gerow discuss why it’s likely not that simple and introduce a third letter to consider – a W-shaped recovery.
This means that we likely haven’t seen the worst of it and factors like unemployment numbers, the number of new COVID-19 cases and Q2 earnings will all dictate how low the market will go, likely retesting the lows of late March.
In their conversation, Gerow and de Sousa also explain that when thinking about the recovery – whatever shape it is – that the stock market and the economy are not one in the same and will recover at different paces.
As always, please contact us at (416) 945-6228 with any questions. You can also read our latest market commentary on the coronavirus here.
Warren Gerow is an independent investment wealth consultant to Sightline Wealth Management.
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