Markets are rallying because we’re in a recovery; the question is what kind of recovery, whether markets have overdone it, and whether or not there’s a double dip on the other side of it, Ed Harrison said during today’s Real Vision Daily Briefing.
Harrison said that we’re seeing equity markets pricing a V-shaped recovery, but we could instead get a reverse radical shape (a sharp drop, small bounce back, then long period of subpar growth) or a W-shaped recovery, also called a “double-dip” recession. The latter two are his base case going forward, he said.