After taking a beating over the coronavirus, the worst may be over for the stock market, at least according to one top analyst. (CNBC)
Ned Davis Research’s Ed Clissold, who turned cautious on March 10, upgraded his six-to-12-month market view to neutral last week.
“The market tends to lead the economy,” the firm’s chief U.S. strategist told CNBC’s “Trading Nation” on Thursday. “An average of four months before the end of recessions is when the S&P 500 bottoms. So, if you look out a few months and think things will be getting a little bit better, stocks should anticipate that.”
Clissold sees unprecedented fiscal and monetary policy serving as a backstop for stocks, and prevalent pessimism among investors, which is often a contrary indicator of strength, as encouraging signs.
His decision to lift his outlook also had to do with market breadth, or the number of stocks moving together.
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