Man who called Dow 20,000 at end of 2015 says these are the 4 steps needed for a bona fide stock-market recovery

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The man who called Dow 20,000 at end of 2015 says these are the 4 steps needed for a bona fide stock-market recovery:

“ ‘The equity market is giving two or three months for [the market being] closed. … [I]f it goes longer than that, then that’s not going to be good.’ ”

On Monday, the Dow Jones Industrial Average DJIA, -0.97% booked a more than 690-point gain, rising by 3.2% to end the session at 22,327, while the S&P 500 index SPX, -1.06% rose 3.4% to 2,626. The Dow and S&P 500 have risen in four of the past five sessions, but they are down considerably from their mid-February peaks. The Dow is off 24.45% from its Feb. 12 apex, while the S&P 500 is off 22.43% from its Feb. 19 peak, and the Nasdaq Composite Index COMP, -0.70% is 20.

On Friday, President Trump signed $2.28 trillion bipartisan stimulus package into law, aimed at aiding workers and businesses harmed by shutdowns related to the viral outbreak, while the Federal Reserve has already unleashed some of the most potent monetary-policy measures in its history to limit economic harm from the pandemic.

Markets on Monday appeared to draw some optimism from President Trump’s decision to extend social-distancing guidelines to April 30 from April 12, suggesting that the president may be taking more seriously the rapid rate of infection in the U.S. from the disease that was first identified in Wuhan, China, in December and has infected about 770,000 people and killed nearly 37,000 worldwide, according to data aggregated by Johns Hopkins University. In the U.S.

 

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