Three experts break down the reasons behind Monday’s market action and what to watch now.
“I feel that the 737 [Max] is going to be the most tested plane in history. And yet … Phil [LeBeau] was saying it could be a long time before we’re actually in it. Before the pandemic and before the change in CEO at Boeing, I said I was willing to take a film crew and be the first people on. And, you know, my wife really quite candidly said I’m the biggest moron in history, but I think it’s safe by now.”
Yana Barton, portfolio manager at Eaton Vance Management, says expectations may be too elevated.
“So much of it is still dependent on a vaccine, and therefore it’s driving a lot of the sentiment and the outlook for the market. That being said, I think it’s fair to say that the market has recovered quite a bit from the February/March trough levels and we’re sitting at a level now where you have to make some assumptions into 2021, which is becoming a little murky and most would suspect that the earnings are still a little too high.”
Bruce Bittles, chief investment strategist at Baird, says markets still have a rough road ahead.
“I think the investor has to expect we’re going to have a rocky go of it here. I mean, we’ve never experienced a total shutdown of the economy before, so we open the economy, it can be much more difficult, but nevertheless … I think the markets just simply got too far ahead of themselves in early June … and expectations for the market and the economy just got too elevated.”