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https://www.cnbc.com/2020/06/11/why-are-we-in-a-recession-if-the-stock-market-is-recovering.html

Why are we in a recession if the stock market is recovering?

2020-06-11 00:00:00, Megan Leonhardt, CNBC

Content Categorization
/Business & Industrial
/Finance
/News/Business News/Financial Markets News

Word Count:
773

Words/Sentence:
25

Reading Time:
5.15 min

Reading Quality:
Intermediate

Readability:
11th or 12th

Media Sentiment
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"Typically the market will start declining before a recession is visible and it will start recovering about four months before the end of a recession," Jurrien Timmer, director of global macro at Fidelity Investments, tells CNBC Make It.

The stock market started to drop off in February, but experts say we didn't hit peak unemployment until May. In fact, the stock market has a decent track record of "sniffing out" when the economic situation has stopped getting worse, says Liz Ann Sonders, Schwab's chief investment strategist.

So if we're in a recession, aka an economic downturn, why is the stock market spiking?

What's ahead for the markets In this case, Sonders says she believes the recent stock market rallies have more to do with the hope by investors that the U.S. will undergo a "V-shaped" recovery where the country's GDP takes a sharp and rapid downturn followed by a violent upswing.

The stock market tends to be what's referred to as a leading indicator of the economy.

Keywords
S&P 500 Index, Recessions and depressions, Stock markets, United States, Personal finance, Markets

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