Outlook Q3: Nearing the limit

The strength of the market rebound from the Covid-19 crash in the second quarter of 2020 will be hard to match in the third. It occurred despite the widespread economic pain caused by lockdowns but as central banks flooded the financial system with liquidity.

Even as countries were posting large year-on-year falls in GDP, the S&P 500 had its best quarter since Q4 1998, returning 20 per cent. But as more bleak economic data emerges, we think markets may be nearing their limit for now, and could struggle to move higher without further stimulus. 


Source: CREIS, Citi, Fidelity International, May 2019


Read the full Fidelity Q3 Outlook