J.P. Morgan Asset Management outlines the economic and market shock from COVID-19, framing it as a sudden stop recession followed by an uneven recovery across sectors and regions. The piece highlights how policy responses exceeded those seen in 2008, while raising questions about whether markets were pricing in a faster recovery than fundamentals justified.
Guide To The Markets – US 2Q 2020
J.P. Morgan Asset Management
Research
71 Pages
Key Takeaways
Policy Response Scale: Global fiscal and monetary stimulus exceeded $10 trillion, dwarfing the ~$2 trillion deployed during the 2008 financial crisis.
Earnings Collapse Depth: S&P 500 earnings expectations fell by over 20% in early 2020, marking one of the fastest downward revisions on record.
Recovery Path Divergence: Equity markets rebounded nearly 25% from March lows even as unemployment spiked above 10%, signaling a disconnect between markets and the real economy.
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