Coronavirus: Trump's cure could be worse than the disease
President Trump was looking for quick fixes and strives to reopen the economy by Easter which could lead to a deeper crash and failure to recover, according to FXStreet’s analyst Yohay Elam.
“The latest quick fix is saying he does not want the cure to be worse than the disease and wish to see churches fill up in Easter. The self-proclaimed ‘wartime president’ seems unprepared for a long battle.”
“It would be more than a delay in beating coronavirus and recovering, but also risks a loss of confidence. Investors would be cautious when reacting to genuine signs of improvement – from falling numbers of new deaths to the removal of lockdowns.”
“The bottom in equities could still be far. Another massive sell-off could be seen. Moreover, the recovery may be a prolonged one – no V, no U, and not even W.”
“A secondary effect may also come from Trump's lower chances of being reelected, pushing Wall Street further down in fear of Democrat-led regulation.”