Wednesday, May 6, 2020

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It depends on whom you ask.

An eternal question in financial markets is: what is priced in?

The question is sort of silly on one level and the only question worth asking on another. The market’s current rally off the March 23 lows has fanned the flames of a tense debate over whether stock prices are too high, what assumptions those buying equities right now are making, and why stocks are likely to go up or down from here.

The global strategy team at JPMorgan summed up consensus thinking on what’s driving this rally nicely on Tuesday, writing in a note to clients:

We believe that a bullish environment