Turning Down the Dial
If bullishness could be mapped out on a scale from one to 10, Neil Dutta just turned down the dial from an 8 to a 7 -- or maybe a 6, he said. It’s not a drastic downgrade to his outlook but the head of economics at Renaissance Macro Research says the risks have ticked up a bit in recent days.
To Dutta, the mass protests and gatherings happening around the country heighten the potential for an increase in coronavirus cases, which, in turn, could complicate plans for re-openings. Sure, stocks are going up right now, making everyone feel better, he said, but “we had been thinking we’d open up nicely in the third quarter and that potentially puts that in doubt.”
Dutta added that it’s too early to tell whether protests will cause another wave of infections -- and that there are still plenty of things to be upbeat about, including positive trends in housing data as well as an easing in global conditions, particularly in Europe.
--With assistance from Claire Ballentine.
This article was provided by Bloomberg News.