It’s difficult to know what to make of the economy and outlook for markets this time, and the feeling was summed up in a recent KKR note titled “The Twilight Zone”.
KKR notes that “the first quarter of 2020 will go down in history as the highest-velocity market drawdown”. To highlight the severity with which markets reacted, the global financial crisis saw a peak-to-trough drawdown over 322 days, but the covid-19 crisis troughed in around three weeks.
