FAST FIVE: 2020 PTSD… And How Great The Market Thinks 2021 Will Be
All these shifts have consequences on future demand, supply, investment and growth, but also on expectations.
Markets think its over so they are enthusiastic.
Most importantly, the way markets have operated through the crisis has largely been set by the central bank polices put in place post 2008 – QE and Ultralow rates.
It sees only upside because the global economy will recover from the swift, sharp shock of 2020.
I'm not just thinking about what rising debt levels at sovereign, corporate and individual levels means in terms of future austerity threats. I'm not just thinking about rising inequity and inequality – how government stimulus has largely resulted in the rich getting richer – and what that does politically. What I'm trying to figure out is whether the Pandemic might just prove to be a catalyst to a major rethink.