- Equities to remain in a bear market and in a downtrend
- Gold could slip further
Though U.S. equities surged on Friday—their biggest one day jump since 2008—as markets finished a highly volatile roller coaster of a week driven by coronavirus developments, we expect stocks to resume their downtrend during the week ahead.
The move higher for the , , and was triggered by Friday afternoon’s letter to lawmakers from House Speaker Nancy Pelosi announcing that after days of intense negotiations with Treasury Secretary Steven Mnuchin, a deal had been reached to provide expanded access to free testing, $1-billion in food aid and paid sick leave to many of those affected by the pandemic. The legislation was passed overwhelmingly in the House early Saturday morning.
During the course of the preceding week, in which markets were buffeted between significant losses one day followed by smaller rallies the following day, until Friday’s surge, investors, analysts and even casual observers…