The top economists on Friday have felt that the financial markets are now facing the worst crisis which the economy has seen since the year 1929 when the Great Depression had taken place. The economists have now downgraded their forecast to predict an impending recession all over the world.
The stocks on Friday had seen a revival in the regions of United States, Asia and Europe but the analysts still feel that the scare of the coronavirus is an unprecedented crisis since they have already been able to record the highest ever leveraging and the stocks being overbought.
The experts have been feeling that since the time they had come into the market with all the problems which hid inside the momentum which the markets had been carrying. They feel that they were extremely concerned and the present situation is an extremely difficult one.
There was a drop of 30% in the S&P 500 from the all-time highs which it had recorded in February however the experts feel that there may be further downfall before the market is considered oversold
The experts feel that the drop is akin to the Great Depression of the year 1929. The stock markets had crashed on the 29th of October in the year 1929 as the S&P had fallen by 86% in below three years and had not regained their highs till the year 1954.
This may coincide as per the experts in the month of April as there is some abating of the lockdown which has been extreme in the regions of Europe and there must be a short-covering rally.
The situation is certainly worse than what it was in 2008.