ClearBridge's Schulze: $1.5trn fiscal stimulus needed to get markets moving upwards

Relief for small business owners

Only a fiscal policy response to the coronavirus pandemic totalling $1.5trn will be enough to soothe investors, according to ClearBridge Investments' Jeff Schulze.

Schulze said equity markets were "getting closer to that inevitable bottom", noting the S&P 500 index has already slumped by 32% between 19 February and 20 March - the same number as the average peak-to-trough decline of the index during every recession since 1947. The investment strategist admitted markets were likely to "overshoot to the downside" in the near term, but that "we could be reaching the levels where we are going to see a trough of the S&P 500". Economists warn central bank and government policy will not calm pandemic sell-off The velocity of the market sell-off, whic...