Market Outlook · September 28, 2020

A Long Road to Recovery, But Glimmers of Light

Brent Ciliano

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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