Investors are debating whether the dynamic rebound in America’s stock markets is part of a sharp, V-shaped recovery or a short-lived “dead-cat bounce” that will soon fade and see risk assets plunge to new lows.
The lockdowns amid the pandemic have sparked an economic catastrophe that, since states began implementing stay-at-home orders in March, has seen more than 36 million people file jobless claims and led to expectations of GDP contraction in the second quarter of more than 30 percent on an annualized basis.
