Playing The Waves – June 29, 2020

After a powerful upwave since the March 23 low, global equity markets have stumbled a bit in the past two weeks. The reality that it will be a long, tough slog to return to economic normality is gradually sinking in, as second COVID-19 waves have hit select economic regions, especially those that prematurely tried to re-open.

A just-published report updated our absolute return recommendations in the MRB TradeBook, and noted that:

  • Although we remain constructive on the longer-term outlook, a better entry point for putting new money to work awaits either lower equity prices or better corporate earnings prospects than exist at present.
  • We closed two recommendations with a profit and are tightening stops on several winning positions to protect against another risk-off phase.

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