There are multiple professional are wondering, why is this market not pricing a recession? Are they enough fundamentals for the NASDAQ100 to be positive YTD? Are the bulls controlling this market?
Here you can review a summary of the flows. About 600Bn USD went info money market funds and as of know Bonds in North America, shows -270Bn and Equities -23Bn.
FundFlows
World guide only equities in Asia, are seeing inflows. Sooner or later this money will move back into bonds and equity the key answer is what valuations are long term investors willing to take.
If stocks were expensive 2 weeks ago, now they are more expensive. Will be be even more expensive 1 month from now? What about a year from now?
Certainly negative interest rates are placing a huge role in valuations and discounting cash flows but in my opinion if long term value players are not active or at least don’t show their hands. There is not long term support at these prices
From REUTERS on March 15, Jerome was quoted saying that they cant now the effects and that the future was unknowable. Was he talking about the virus or was
“It’s very hard to say how big the effects will be or how long they will last. That’s going to depend of course on how widely the virus spreads, which is something that is highly uncertain and I would say, in fact, unknowable.”
And today 45 days later, the Nasdaq 100 is positive year today.
