Stock markets have staged a significant recovery from the Coronavirus slump, rallying sharply from lows hit in March. But gains of 10% or more are common in bear markets – and the crisis at many of the world’s businesses has only just begun.
A wave of insolvencies will puncture the optimism, as companies with too much debt fail to keep afloat. There will be some individual winners that have seen demand soar, but earnings will slump at most that escape going bust. In fact, the fall in company profits this year will probably be more severe than at the height of the last financial crisis.
View Full Article – published by Charles Stanley on 15th April 2020
‘Lockdown for longer’ is a major market threat https://t.co/R7MfdvzcTE
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