Valens Equity Weekly Insights and Inflections for October 20, 2020
Aggregate ECF™ Trend Analysis:
Management confidence showed robust levels in February but unsurprisingly saw a sharp decline with the increasing uncertainty of the near future in March and April. The first two months of the year saw a strong recovery in management outlook in Q4 2019, a sign that management teams continued to show optimism about investing in growth before the coronavirus pandemic outbreak. If recent “green shoots” in May are confirmed though, it highlights that while the pandemic has been disruptive, corporations are seeing a “light at the end of the tunnel”.