Mona Mahajan, Edward Jones senior investment strategist, joins 'Closing Bell: Overtime' to discuss her market outlook, market bottom and trends....(read more)
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Don't expect markets to price in a recession twice, says Edward Jones' Mona Mahajan As the world grapples with the ongoing economic impact of the COVID-19 pandemic, there is a growing concern that we may be headed for a global recession. With stock markets experiencing extreme volatility and many businesses struggling to survive, investors are understandably anxious about the future. However, according to Mona Mahajan, a Senior U.S. Investment Strategist at Edward Jones, it is unlikely that markets will effectively price in a recession twice. In a recent interview, Mahajan argued that while the initial market downturn in response to the pandemic was driven by fear and uncertainty, future market movements will be dictated by economic and corporate fundamentals. Mahajan points out that markets tend to be forward-looking, meaning that they anticipate and react to changes in economic conditions before they occur. When the pandemic hit, the markets responded by factoring in the significant negative impact on GDP growth, corporate earnings, and consumer spending. As a result, we witnessed a rapid and steep decline in stock prices. However, Mahajan suggests that the worst of these negative shocks may already be priced in, meaning that future market movements will depend more on actual data and fundamentals. She emphasizes that the market is constantly in the process of reassessing and recalibrating its expectations based on new information. As the economy gradually reopens and data on economic recovery becomes available, market participants will adjust their views accordingly. It is worth noting that the stock market is not a perfect predictor of the economy. While it can indicate general trends and sentiment, it can sometimes deviate from economic reality due to various factors, including investor psychology, government interventions, or short-term speculation. Mahajan advises investors not to expect markets to precisely track every twist and turn of the economy, as they are influenced by numerous complex factors. Instead, she suggests focusing on long-term fundamentals, such as the quality of individual companies, their ability to weather economic storms, and their future growth prospects. In conclusion, while the current economic crisis is still far from over, Mona Mahajan cautions investors not to anticipate a double dip in market pricing for a recession. Instead, she suggests that markets will focus on economic and corporate fundamentals going forward. By taking a long-term perspective and considering the intrinsic value of investments, investors can navigate these uncertain times with greater confidence. https://inflationprotection.org/edward-jones-mona-mahajan-dont-anticipate-double-priced-recession-by-markets/?feed_id=119225&_unique_id=64b9302861275 #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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