The nation’s stock markets dodged a collapse thanks to the Fed and Congress, but it is too soon to say whether the markets are now in a long-term recovery. The coronavirus crisis lingers, and until there is some resolution, investors will be spooked.

Those were among the comments of Natixis Investment Managers' executives in an online conference on Wednesday.

Jack Janasiewicz, senior vice president and portfolio strategist at the company, says “we are optimistic that the worst-case scenario, a financial crisis, has been short-circuited.”

However, he added that, until there is a clear sign that the coronavirus is under control, the market will operate under a cloud that could destroy a full recovery.

Strategists are still trying to determine how long the virus will harm the markets and “how we can turn the market around,” he said.

Natixis’s team said they don’t foresee a “V-shaped” recovery.

What could reassure markets and start them down the path to a long-term recovery? It would be some sort of return to normal business and social conditions, he said.

“Are we seeing people using public transit again? Are we seeing them going back to work, to places of public worship?” Janasiewicz asked.

“The market will need clarity. It will need to see some sort resolution of this issue,” added Kathryn Kaminski, chief research strategist with AlphaSimplex Group.

She said long-term bonds have tended to do well in these difficult circumstances. She added that the market would face a “bumpy road” for some time to come. She cautioned that money managers must learn to live with high volatility levels.

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