| But I would argue this bounce-back rally has also gone too far, too fast. Granted, the market is a forward-looking mechanism and the $2 trillion stimulus package will provide a major economic jolt. What's more, several states are taking baby steps to re-opening. Read This Story: Investors Aren't Out of The Woods Just Yet Still, it's hard to justify this level of optimism, at least until we get a better read on second quarter earnings. That being said, if you wait until the "all-clear" signal has been given, the most attractive discounts in the market today will be long gone. - Stephen Leeb, chief investment strategist, The Complete Investor and Real World Investing.
March was a terrible month for the stock market, which plunged into bear territory before rebounding. Do you expect the bear to return this year? One thing a unique event does is distort the utility of what normally are handy indicators. Will we make lower lows than we've made? I think you can make a good case that we won't. One factor is that horrible as the pandemic has been in many Western countries like Italy, Spain, and the U.S., Asia has been relatively unscathed. That suggests that many Asia-based companies, some of which we've been recommending, may do better than Western companies and provide support to the markets. Still, in an integrated world without a broad-based recovery, all companies and the market as well will be affected. It's just really hard to predict. In the bear market of 2008-09, stocks after an initial recovery made several more bottoms before the bull took charge, so that could happen this time around. - Amber Hestla, chief investment strategist, Income Trader, Profit Amplifier, Maximum Income, and Precision Pot Trader.
Do you expect a "V"-shaped economic recovery, one that's "W"-shaped, or something altogether different? It's difficult to forecast the economy in detail, but like almost every other analyst, I believe we will see the deepest contraction in history this quarter. The Federal Reserve's latest forecast is for a decline in U.S. GDP of 11.8% in the second quarter. Take a look at the chart. 
That forecast is based on a model that is curve fitted to the last recession. Fed economists basically looked at the data from that recession and found the formula that had the best fit to the data. Generally, curve fitting has its limits as a gauge, but this Fed estimate closely matches the Congressional Budget Office (CBO) forecast of an 11.8% contraction. So a decline of 11.8% for the second quarter seems like a good estimate. CBO expects growth of 5.3% in the third quarter and then growth averaging 2.5% to 3% into the end of 2021. I think the CBO is being too optimistic. That same forecast shows unemployment averaging 14% in the second quarter, peaking above 16% in the third quarter and averaging 10.1% for 2021. Editor's Note: In this "greatest hits" Q&A, I've only scratched the surface of our team's expertise. If you're looking to generate huge profits with greatly reduced risk, I strongly suggest you consider the advice of my colleague, Amber Hestla. Amber Hestla runs our premium trading service, Profit Amplifier. Amber has devised a highly unusual but powerful tactic that turns tiny price moves into massive gains. The team at Investing Daily makes you this bold promise: Over the next 12 months, if the gains from all of Amber's winning trades don't add up to at least 1,000%… Just let us know, and we'll give you a second year of Profit Amplifier… absolutely free. Want to start making money with Amber? Click here for details. | 
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