Covid-Era Similarities Signal More Pain Ahead for Global Stocks
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The ongoing global rush to exit stocks and preserve capital against policy uncertainty has a lot in common with the Covid-era selloff.
Both now and in 2020, investors had very high exposure to equities at the start of the year, which is quickly being unwound. Meanwhile, demand for hedging is surging. That’s bad news for market sentiment as long as the White House’s stance on tariffs remains unchanged, and countries including China retaliate.