Investors should be braced for further near-term declines in stock markets. But the combination of highly negative sentiment and attractive valuations presents a solid longer-term buying opportunity. Essentially everything in on sale.
The global COVID-19 outbreak, and the government-mandated lockdowns that ensued, caused risk assets to drop at an unprecedented pace over the first quarter of 2020.
In this week's note, we take a close look at country and regional virus data, and examine the pitfalls of over-extrapolating trends that often reverse.