The Next 45 Days May Be “The Most Critical Period In U.S. Financial History”
Why One Expert Says The Next 45 Days May Be “The Most Critical Period In U.S. Financial History”
April 23, 2020
The current market “is like no other” in U.S. history and it’s fate—and that of the U.S. economy—may depend on what happens in the next 45 days. Here’s why.
In just a month since the market hit a supposed bottom, the S&P 500 index is up roughly 25%, recouping a chunk of the loss racked up during the worst of the coronavirus market meltdown between mid-February and mid-March.
Still, money manager Alan B. Lancz says the market is now at an inflection point, and the next 45 days may be the most crucial in market history.
“The next 45 days may just become the most critical period in U.S. financial history,” Lancz wrote in a note this week. “While on average we may face a bear market every 10 years, this one is like no other.”
The coronavirus pandemic has sickened more than 869,000 Americans at the time of writing, and the outbreak has forced a near full-stop of all non-essential economic activity in order to help slow the spread of the virus.
While there are states in the U.S. that are already planning strategies for reopening their economies, Lancz said that the timing and execution of the reigniting of the U.S. economy could be one of the greatest factors in determining how the market recovers from the pandemic.
Lancz’s note came just days after the Trump administration issued guidelines for states to consider when working on plans to reopen their economies. While several state governors have begun relaxing social distancing guidelines and granting permission for some businesses to resume operations, President Donald Trump said Thursday that his administration may extend its national social distancing guidelines until early in the summer or later, marking a reversal from his prior eagerness to reopen the economy quickly.
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