One Wall Street expert warns the market's coronavirus-driven meltdown could soon confirm a recession is looming — and explains why two-thirds of the damage is already done
To make sense of the cues stocks are sending about the economy's fate, Lori Calvasina, the chief US equity strategist at RBC Capital Markets, divvied up three broad percentage pullback ranges for the S&P 500 and what they historically implied.This kind of sell-off amounts to a 5%-10% pullback from a recent high, and is usually rescued by investors who seize the moment to buy stocks at discounted prices.
This time around, stocks cleared the floor of this range at a historic speed. It took just six days for the2. A growth scare Calvasina defines this scare as a decline of 14%-20% from the peak. And on Friday, stocks dipped into the upper ceiling of this zone.
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