A summer of fear and greed

Amundi Institute, Investment Talks

The big question for investors now is: where do we go from here? In our view, the upside scenario that has been priced in by markets is challenged by the still uncertain path of the virus. Some early market enthusiasm about a virus cure could be overdone, as the path towards a widely available, effective vaccine could be a long time away. Additional stimulus will be needed to offset the demand loss and reduce vulnerabilities in some sectors. The approval of a €750bn recovery fund in Europe, and for additional fiscal stimulus in the US and China, may sustain market sentiment in the short term.

Download PDF


As we enter the summer, conflicting forces in major equity markets have led to a period of temporary equilibrium between fear(risk of a second wave, low bond yields, high gold prices) and greed (equities rallying as a result of economies reopening).

Other news