Stock market’s recovery will be far faster than 2008: Citigroup

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Citigroup says U.S. markets will return to levels from before March’s coronavirus lockdowns more than twice as fast as after the financial crisis

U.S. stock markets will deliver among the steepest recoveries in their history over the next year, returning to levels from before March’s coronavirus lockdowns more than twice as fast as after the 2008 financial crisis, according to analysts from U.S. bank Citigroup.

The forecast is among the most bullish among U.S. market forecasters, many of whom are forecasting next to no gains for the next 12 months. The optimistic targets reflect expectations for improved economic performance next year and in 2022, analyst Tobias Levkovich said in the note. After the 1987 stock market crash the indexes also took more than 18 months to make such recoveries, though both then and in 2008, the losses also took longer than this time around.

 

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