(19 MAY 2020)DAILY MARKET BRIEF 2: V-shaped recovery should be favored

<p>So far, there is little evidence that a V-shaped recovery should be favored, as market outperformance is still being driven by a small number of stocks (i.e. technology and healthcare sectors). Furthermore, the latest rally seen in energy providers, largely driven by rising oil prices due to OPEC+ compliance with production cut plans of 10 million barrels per day started this month appears subdued amid urging cost cutting measures to be implemented in the coming quarters. Instead, smaller capitalizations appear more convincing in the longer term in spite of the longer-term catch up potential of small cap indices </p>
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