How quick can economies emerge from the virus and the corresponding lockdowns?
How much impact will tariffs and a potential trade war have on markets?
The uncertainty in markets is at an all-time high as no one can reasonably answer these questions and predict the future price action. Not to mention, it is a U.S. election year.
Volatility is still 2.5x its norm as demonstrated by the VIX and, with all of these concerns in markets, institutional traders are sitting on the sidelines while the markets have adopted a wait-and-see pattern.
Until a vaccine is demonstrated or cases start reliably decreasing globally, markets are unlikely to see a sustained upside period.
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