48 days ago • Posted by Martin Boujol
Brokers remain extremely optimistic about the global market recovery
On the graph below, you can see the pre-Covid GDP Path in yellow compared to the Morgan Stanly forecast in blue. Although Q1 2021 was a little downgraded, MS expects an even higher GDP level than the pre-Covid path starting Q2 2021. And this is not only talking of GDP: 92% of S&P 500 stocks are trading above their 200-day average while at the same time, Q4 2020 earnings growth for the index is tracking at negative 9% since the previous year.
Sources: Haver Analytics, IMF, Morgan Stanley Research forecast