Jurrien Timmer, Director of Global Macro, provides his weekly global macro update. The market had priced in a much worse outcome than what we are getting, and earnings for 2020 are now flattening. Jurrien believes either prices are too high, and needs to correct downwards, or earnings estimates need to inflect higher. Jurrien notes that pieces have begun to fall into place to make what we’re seeing look like a cyclical bull market. We’re also seeing people fight the rally, but this could be a good thing if it continues to provide fuel for the market to go higher while people sit on the sidelines. A declining U.S. dollar is also a bullish development, as a strong dollar suggests liquidity squeeze, which isn’t favourable.
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Recorded on June 8, 2020.