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Flash Report October 2020

Investors reacted to surging COVID-19 cases, renewed lockdowns, election uncertainties, and rich valuations by taking profits and reducing risk. In the near-term, markets are confident any economic slowdown will be met with ample stimulus. Over longer horizons, the net effect of health policy and coordinated stimulus on growth, inflation, and employment will drive asset prices. We expect bouts of heightened volatility as employment and incomes improve, well before economic inflation becomes a serious policy issue.

WRITTEN BY | November 2, 2020

 

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