It is hard picking bottoms in markets, especially in an unprecedented time like with the coronavirus pandemic. Yohay Elam, an analyst at FXStreet, explains three indicators that could provide a better indication of the bottom.
Key quotes
“Spain followed Italy with a nationwide shutdown and has yet to see an improvement. Once the eurozone’s fourth-largest economy follows the area’s third-largest in ‘flattening the curve,’ investors may begin seeing a trend of how the vast economic price is bearing fruit.”
“Investors may begin buying before restrictions are lifted but immediately when reports out of Rome suggest that the government is moving towards such a decision.”
“Any pledge nearing unlimited and patient support can provide a cushion and help near the bottom. The Fed is there to pay the bill, and the government should lean on it.”
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