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Do we see a ‘dead cat jumping’ in the FTSE?

As the FTSE 100 has risen sharply since the March crash there is concern among the economy that we may face a “dead cat”, a temporary recovery in another bear market. With France and Italy getting into trouble, and other countries to follow, will the conference last longer?

“Too often there have been a number of accidents that have resulted in false meetings that have given keepers a false hope that has been temporary.”

Ben Carlson

As the financial adviser Ben Carlson points out, “historically large accidents have exposed false meetings that gave investors a false hope that was short-lived. Prior to the meeting, stocks had dropped by 45%.

According to Ben, the stock market can move faster and faster on a group of dead cats AND under the bear market. The exact details of these bumps can be determined later.

Dot-com damage – a dead cat jumps

UK suffers from the worst decline in history

The UK labor force has plummeted as Covid-19 destroys businesses in the UK. March data shows a sharp decline in the UK workforce for more than two decades, according to a recent report from the IHS Markit PMI.

UK economy down 10%

Bloomberg Economics estimates that the UK economy will lose almost 10% in the first half of the year due to the outbreak of the coronavirus.

In an effort to save the U.S. economy, the US Federal Reserve has agreed to inject $ 125 billion a day, or $ 2.5 trillion a month, to support the areas devastated by the COVID-19 epidemic.

UK PMI fell short of the 2008/09 economic downturn.



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