Dow bounces back – CNN International

The US stock market has rebounded from its coronavirus lows. But where does this leave investors?

“We had a relatively V-shaped recovery in the market,” said said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

She said that the economic recovery won’t trace the same shape but will be more drawn out, as economic data such as weekly jobless claims are suggesting we could be past the worst.

“The reason we’re cautious is really just [about stock] valuation,” said Nixon. Not all stocks are valued at a level that makes them attractive to buy.

At the same time, “we’re still really looking at the US equity market as probably the best one in the world,” Nixon added. “We think US equities are still an attractive place to be.”

For example, America’s big tech companies are leading the way out of this downturn, she said.

For average investors, now the time to look at how their investments have been working out, Nixon said. Questions like whether they have enough liquidity and enough high-quality fixed income assets in their portfolios are important to consider, she said.

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