Succinct Summary: The US got a new President last week, and the new administration is pledging more stimulus. The economy continues to chug along though and there are signs of tight capacity in some segments, especially transportation networks. Could additional stimulus lead to higher-than-expected inflation?
Succinct Summary: The decline in economic activity has been huge and the recovery may take longer than expected. However, bulls are betting on massive stimulus in an environment that was already highly liquid prior to the Covid crisis. Consumers are itching to get back to normal and some hard hit industries are seeing stabilizing trends. But the economy is subject to the machinations of non-economic forces: governments and a poorly understood disease.
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Succinct Summary: 2020 begins with a surge of optimism. The consumer continues to be a bright spot for the economy and business sentiment seems to be turning a corner. Fundamentals are strong and the cherry on top is that interest rates remain low. Capital markets love this environment.