Coronavirus: Early signs in Asia of a V-shaped rebound are encouraging – Charles Schwaab

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The global economy is experiencing a shock, rather than the natural end result of a slow build-up of excesses. Jeffrey Kleintop, a strategist at Charles Schwaab, considers what the eventual recovery may look like and what areas may lead it. 

Key quotes

“This recession is the result of a shock, not the natural end result of a slow build-up of excesses. This may mean the recession and bear market could be deeper, but also that the duration may be shorter.”

“Early signs in Asia of a V-shaped rebound are encouraging, but may instead look more like square root, flattening out as weaker global growth saps Asian economic momentum in the second quarter.”

“Emerging markets, led by China and South Korea, are leading the recovery in the economy and markets as they did during the global recessions of 2000-02 and 2008-09.”

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