Valens Equity Weekly Insights and Inflections for September 8, 2020
Aggregate ECF™ Trend Analysis:
Management confidence showed robust levels in February but unsurprisingly saw a sharp decline with the increasing uncertainty in March and April. The first two months of the year saw a strong recovery in management outlook continue from Q4 2019, a sign that management teams continued to show optimism about investing in growth before the coronavirus pandemic outbreak. The recent “green shoots” in May and June are confirmed, implying that while the pandemic has been disruptive, corporations are seeing a “light at the end of the tunnel”.