Why the stock market rally is actually signaling an ‘abnormal’ economic recovery, not a V-shaped coronavirus rebound

Investors are reading the stock market’s breakneck bounce off the March 23 lows all wrong, says one prominent Wall Street analyst.

There’s a widely held perception that the rally reflects expectations the COVID-19 pandemic will have a piercing but short effect on the economy, with growth rebounding sharply later in the year once the outbreak is corralled, workers return to their jobs and the economy begins humming again.

That isn’t the case, said Tony Dwyer, chief market strategist at Canaccord Genuity, in a Monday note.

“In our view, it hasn’t...