The US economy is surging and life is returning to normal. Consumers have healthy balance sheets and inflation is a hot topic. Companies in hard-hit industries are even talking about having a difficult time finding staff. The Fed seems to be seeing a different picture of the economy though and has no intention of tapering pandemic era stimulus until it’s clear that the economy has returned to maximum employment and inflation is running above 2%.
Covid cases are dropping, vaccines are being administered and warmer weather is coming. Fatigued consumers are ready to return to normal. We especially miss traveling.
Succinct Summary: The Transcript this week is all about the Coronavirus that is rapidly spreading globally and crippling the global economy. This is not only an economic setback but also a major humanitarian crisis. We hope, as do many, that the effects are transitory and that this will be our finest hour!
Succinct Summary: Worries about the impact of the Coronavirus are at the top of mind for management teams. The positive thing is activity is picking up in China and the impact is not expected to be long-term. Short -term worries persist, but elections may be the bigger long term risk to US markets in 2020.