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I've loosened Lee Spelman's contention from "always" to "usually". I pasted her biography to prove she appears qualified.

Lee Spelman, managing director, is the Head of U.S. Equity. She led the Client Portfolio Management from 2003 until 2016. An employee since 1989, Lee was previously a senior research analyst in the U.S. Equity Research group with responsibility for the technology sector. She was also the global technology sector team leader. Lee holds a B.S. in economics from the Wharton School of Business at the University of Pennsylvania and is a CFA charterholder. She is a trustee of the University of Pennsylvania. She holds Series 7, 24 and 63 licenses and is a member of The New York Society of Security Analysts.

US stocks erase all losses for the year | Financial Times

US stocks have climbed more than 40 per cent from a mid-March low, with the Nasdaq up 10.6 per cent since the start of the year and the S&P 500 now little changed. The rebound has come in spite of the recession caused by the coronavirus pandemic and civil unrest in the US after the killing of George Floyd.

“The history of markets is that they always overshoot both ways,” said Lee Spelman, head of US equities for JPMorgan Asset Management. “What you’re seeing is an expectation of a V-shaped recovery and that may prove to be too optimistic.”

Stanley Druckenmiller, a former hedge fund manager, said that “the excitement of reopening is allowing a lot of these companies that have been casualties of Covid to come back and come back in force”.

Support by the US Federal Reserve has also helped to alleviate the economic strain. The central bank has slashed interest rates to zero, launched an unlimited bond-buying programme and announced 11 lending facilities.

“I would also say I underestimated how many red lines, and how far, the Fed would go,” Mr Druckenmiller said, in an interview with CNBC.

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    $\begingroup$ Too vague a question. Define “overshoot.” $\endgroup$ Jul 16 '20 at 14:03
  • $\begingroup$ What would it mean for a market to not overshoot? The price goes up or down and then just... stays there and never changes again? $\endgroup$
    – user253751
    Jul 17 '20 at 11:09

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