AMP Oliver’s Insights – What signposts can we watch to be confident shares have bottomed?
AMP’s Dr Shane Oliver discusses key market recovery signposts in this edition of Oliver’s Insights.
Dr Oliver summarises the key points as follows:
While shares have rallied 15-20% from their March low and may have started a bottoming process, it’s still too early to say with confidence we have seen the low for this bear market.
- Key signposts to watch for are:
- Signs that the virus can soon be contained (here the evidence is starting to look better);
- Monetary & fiscal stimulus to minimise collateral damage to economies (this gets a tick);
- Signs that collateral damage is being kept to a minimum and
growth momentum is bottoming (it’s too early for this one – albeit this may partly be a lagging indicator); and
- Technical signs of a market bottom (some tick off).
You can access a copy of this edition of Oliver’s Insights here: