(Reuters) – BlackRock, Credit Suisse and some other big banks reckon it is time to get back into equities after markets rallied this week following massive government and central bank stimulus packages to fight fallout from the coronavirus crisis.
FILE PHOTO: A sign for BlackRock Inc hangs above their building in New York U.S., July 16, 2018/File Photo
The $2 trillion U.S. fiscal stimulus package proceeding through Congress has triggered big gains in global stocks, sending investors rushing to dust-off models from the 2008 financial crisis to gauge the right time to buy.
The Dow finished up 21% from its Monday low on Thursday, establishing it in a bull market, according to a widely used definition. It was the index’s strongest three-day percentage increase since 1931.
World stocks .MIWD00000PUS have risen nearly 8% so far this week and were on track for their best weekly gain since December 2011. They have recouped more than $5 trillion in the past two days.
Spotting an inflection point is not easy when the coronavirus is still spreading rapidly across Europe and the United States, but BlackRock and Credit Suisse said on Thursday they had turned slightly bullish on risk assets.
“The unprecedented actions represent the type of decisive policy response we have been calling for – and set the scene for an eventual economic recovery,” Jean Boivin, head of the BlackRock Investment Institute, said on Thursday.
The world’s top asset manager said the market sell-off had created significant value for long-term investors and…