Five ‘Ps’ That Will Help Determine If the Market Has Bottomed
- Ps are Pandemic, production, policies, positioning and prices
- Bulls and bears split on whether markets have seen the worst
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Bulls and bears remain at loggerheads about whether risk assets have hit a bottom. The following five “Ps” may provide an answer: pandemic, production, policies, positioning and prices.
Investors have fled emerging markets in record numbers since the outbreak of the coronavirus, even though central banks and governments have piled on stimulus to counter the impact of the deadly pathogen. While strategists at companies such as JPMorgan Chase & Co. have concluded that most risk assets have seen their low points, others at firms like Deutsche Bank AG say it’s too early to sound the all-clear.