No one could have predicted the outbreak of COVID-19 and the subsequent measures taken to contain it. The economic impacts of the pandemic reach far and wide but it isn’t all doom and gloom.
With three effective vaccines now in the offing, and the prospect of more to come, investors can look forward to the prospect of economic recovery in 2021 with more clarity.
A lockdown-induced Christmas TV binge didn’t extend quite as far the Wizard of Oz, but “the Great and Terrible” did come up in a conversation about bitcoin.
2020 didn’t go the way we all expected. David Coombs has tossed out his old fortune-telling teacup and reached for the magic 8-ball this year.
Their policies could end up boosting growth, though companies may get a smaller slice
Financial markets have been on a rollercoaster over the past year. There was a sharp drop in March as countries locked down and then a swift upswing followed, led by technology shares. Even unloved companies, particularly banks and energy firms, have rebounded lately, thanks to good news about vaccines.
Rather than try to reduce it by austerity, inflation or default, the government should focus on keeping the rate of economic growth above the cost of servicing the debt.