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In one month, from February 19 to March 23, the S&P 500 shed 52.6% of its value. The return has been equally dramatic, just five months from the nadir to full recovery on August 18. A number of fundamental factors are tilted to a stronger US economy beginning in the second quarter and lasting to the end of the year. All in all, optimism is not inappropriate as bulls could enjoy another 15% winning year, according to FXStreet’s Analyst Joseph Trevisani.

Key quotes

“The next year appears very positive for equities and the S&P 500. Once the pandemic retreats, deferred global consumer demand should drive a robust expansion in growth.”  

“In the near-term, fiscal support in the United States, Europe and China will help keep growth intact, bolstered by the global zero rate regime, until returning employment raises consumer spending.”  

“As employment returns and consumption picks up, business spending should add its 10% to 15% to economic activity.”  

“After the sometimes grim and often dispiriting events of the past year, optimism may seem inappropriate but that does not mean it is inaccurate.”