The Market Is Pricing In A Long Recovery
- We believe the market is pricing in a relatively slow recovery from the pandemic, with society’s return to normal approximately a year away.
- Equity markets have rallied recently, driven by liquidity from global stimulus; however, earnings expectations for companies are dropping rapidly.
- The flight to perceived safety continues as established growth stocks outperform instead of value and small-cap stocks–which typically rally in a recovery.
This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action.
The views contained herein are those of the authors as of April 2020 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.
This information is not intended to reflect a current or past recommendation, investment advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Investors will need to consider their own circumstances before making an investment decision.
Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.
Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including the possible loss of principal.
T. Rowe Price Investment Services, Inc., Distributor.
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