(25 March 2020)DAILY MARKET BRIEF 2:To assess how well the market recovers

<p>To assess how well the market recovers, we will be closely monitoring two things: the price volatility and the US dollar inflows.</p>
<p>First, a 5%-10% daily volatility is bad, regardless of its direction. A 10% jump in asset prices is as worrying as a 10% fall. Therefore, a stabilization of market prices near a 1-3% daily range is necessary to restore the investor confidence in the short to medium term.</p>
<p>Then, the slowdown in US dollar purchases should be a positive hint that the fund liquidations are slowing and investors start bringing the pile of cash they are currently sitting on back to the market.</p>