Two-weeks ago Wall Street’s S&P 500 and MSCI’s main world stocks index were both down 14% for the year and the Nasdaq was officially in minus 20% “bear” market territory.
Now? Though the war in Ukraine rages on and interest rates are on the up, the S&P 500 is back to within 5% of its all-time high, MSCI World has recovered half of its drop and the Nasdaq is down a more manageable 8%.
Analysts hope that as and when the dust settles, corporate earnings will still look okay, and that the dreaded “stagflation” scenario will be avoided. TINA, or There Is No Alternative, is still alive and well it seems.
The next earnings season is approaching but if the Russia-Ukraine crisis does lead to a new Iron Curtain, it might get harder for stocks to defy gravity.