Stress tests (2020/9/30)
The Covid-19-induced recession has ended with a growth surge in Q3. Yet a rising tally of infections is spawning uncertainty - as is, temporarily, the Brexit endgame and the upcoming US elections.
Clear & concise
- A historic GDP growth surge in Q3 on the heels of the coronavirus-induced recession;
- Yet the rising tally of infections signals the potential fragility of the recovery;
- The US elections and the Brexit negotiations are causing temporary nervousness;
- The Fed’s recalibrated strategy is likely to become the new benchmark, prolonging the low-interest-rate phase;
- Regarding asset allocation, we remain positive on higher-risk (European) assets.