In recent times, the US government has made positive statements about steady economic recovery in the long term. It also assures market participants that economic indicators are rising slowly but surely. However, Wall-Street traders remain cautious. They prefer buying up safe-haven assets.
No doubt, the situation in the financial markets is improving, fears are waning, and stocks are gradually moving higher. Yet, the US market is unlikely to get back to normal in the near future. The economic revival is going to be quite slow despite some green shoots of recovery. The CBOE Options Volatility Index, also known as the fear indicator, has been falling rapidly in recent weeks, decreasing to its lowest level since late February. Moreover, the options markets also gained ground as investors shredded off fears about a short-term fall in stocks. Experts of major banks, including Goldman Sachs, UBS Global Wealth Management, and Morgan Stanley, boost trading sentiment with their optimistic forecasts for the stock market, encouraging investors to return to the market.
The great majority of market participants have followed their advice and resumed purchases of assets. About 80% of fund managers surveyed by BofA Global Research expect the global economy to accelerate significantly next year.
