Joe Terranova, Virtus Investment Partners, joins 'Closing Bell: Overtime' to discuss Microsoft and Texas Instruments earnings reports and the broader market....(read more)
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Virtus' Joe Terranova, along with many other financial experts, has recently asserted that the economic recession has already been factored into stock prices. This means that most of the negative effects of the recession have already been taken into account by market investors, and that stock prices reflect this reality. Terranova argues that although the pandemic has caused significant damage to the economy, investors have largely anticipated the impact and reflected it in the value of their investments. The pandemic and resulting economic shutdowns have had an injurious effect on companies across a variety of industries. Many businesses have been forced to close for good, while others have experienced significant losses in revenue. As a result, it is not surprising that stock prices have taken a hit. However, Terranova argues that the stock market is forward-looking and that investors are always trying to anticipate the future. By this logic, Terranova believes that investors are already pricing in the effects of the recession and looking beyond it to future growth. While some may be concerned that a second wave of infections could cause the market to plummet again, Terranova is confident that it will not come to that. Terranova believes that the market has already built in the possibility of further economic disruption and that it can continue to rise. He points to the positive economic indicators that have been recently reported, such as rising consumer confidence and strong job growth, as evidence that the market is on the right track. The idea that the market reflects the impact of an economic recession is not a new one. In fact, it is a well-established principle in finance that prices reflect all available information. This means that, in theory, the market should always reflect the most recent and up-to-date information on any given company or industry. When it comes to the economic recession, this means that stock prices should already reflect the widespread effects that the pandemic has had on businesses. In summary, the view that the economic recession has already been priced into the stock market is a widely held one. Terranova's expertise and experience lend weight to this perspective, as does the larger body of economic research. Despite the ongoing challenges posed by the pandemic, investors seem to be looking toward future growth and betting on the resilience of the market. As always, however, market predictions can be subject to change, and investors should always keep a close eye on the latest economic indicators. https://inflationprotection.org/joe-terranova-of-virtus-claims-that-the-stocks-have-already-factored-in-the-economic-recession/?feed_id=85338&_unique_id=642fa65886d63 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #ClosingBellOvertime #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #ClosingBellOvertime #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews
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