A Long Road to Recovery, But Glimmers of Light
CFA | SVP, Chief Investment Officer
1 Why is the market's recovery so strong?
- Combined monetary and fiscal policy stimulus has amounted to an unprecedented 40% of US GDP year to date.
- TINA (There Is No Alternative) is back with a vengeance and forcing global investors to put more risk assets into their portfolios than they may have otherwise to compensate for this dilemma.
2 What is the market's path from here?
- Recent market pullback is not a warning sign and is actually quite healthy.
- After November 2020, several moving parts will come into play that will influence returns.
- Beyond the next roughly 12 months, we see the start of a much longer post-recession growth phase lasting at least another 4 years.
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