Highlight of the month: despite the recent market rebound, we expect further downturn to come
Market sentiment changed rapidly during March 2020, mainly due to Congress passing the CARES (Coronavirus Aid, Relief, and Economic Security) Act, providing an over $2 trillion economic relief package to the economy. Along with that, the Federal Reserve intensified its efforts to bolster the economy with a series of lending programs that could inject up to $2.3 trillion into the economy.
Despite the current optimistic sentiment, we remain bearish on the mid-term outlook of the economy, given that a record