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Welcome to Wall Street's 'Summer of Anxiety'

6 22 0
09.06.2021

As summer comes to the United States, the coronavirus is receding, businesses are reopening, and people are going back to work. There are memes everywhere trying to encapsulate the elation of the season — "hot vax summer," "the new Roaring 20s," etc.

But on Wall Street, things are a bit darker. Among money men paid to predict the future, this will be the "Summer of Anxiety."

The peculiar nature of pandemic's economic recovery has made the next few quarters nearly impossible for even grizzled old-timers on the Street to forecast. Meanwhile, over in the stock market, retail traders stuck at home continue rewarding their favorite stocks for only-Christ-knows-what-reasons and jumping on momentum trades — corporate fundamentals be damned.

All of this is to say that Wall Street has found itself in limbo. No one knows how the economy will shake out after the strange dislocations caused by the pandemic are sorted, and no one knows if retail traders violently shoving stocks around will be here to stay once the world fully reopens.

There is so much uncertainty that Denise Schull — an author and psychologist who works with hedge fund managers and professional athletes— says her main trick these days is to get her worried Wall Streeters to take money out of the market and do less.

Or, as Bob Chapman, founder of Chapman Capital, said in an interview with CNBC last week: "To me it's time to go kitesurfing." He's lucky, of course. If you know Wall Street you know that not all money managers are well-adjusted enough to have a hobby.

There has never been a recovery like this one. This economic downturn was different from any in recent memory — people lost their jobs and businesses closed because they were required to do so. After losing 22 million jobs at the start of the pandemic, we still have to regain under 10 million jobs to get back on the country's pre-pandemic trajectory. This isn't steady going either. In March........

© Business Insider


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