Richard D. Steinberg, CFA
Chief Market Strategist
June 10, 2020
Richard Steinberg, CFA, Chief Market Strategist for The Colony Group, participated in the CNBC Fed Survey which represents the opinions of 40 of the nation’s money managers, investment strategists, and professional economists. His comments are below:
The liquidity melt-up in the US markets has been a function of hope and optimism, which appears to be priced in to current levels. The proof will be in the pudding as investors are willing to use 2022 earnings estimates to justify an anticipated V-shape recovery. My playbook would call for a rest in the move with a potential 10% pullback so that the economy has time to catch up to the optimism. While the Fed has done an excellent job in navigating the crisis, the market moves may cause them pause to continue to support certain sectors in the credit markets over the long run.