In this report, we will look at which of the three economies that we monitor the most closely have the best prospects in terms of emerging quickly from the corona crisis: the Eurozone, the United Kingdom or the US.
We should be very careful with drawing parallels with the past when it comes to predicting how asset markets will perform in the coming quarters. Many asset prices have been artificially pumped up, making them vulnerable. Therefore, it could very well be that many assets will suffer because of rising interest rates before the real economy starts to feel the pain.
A more expansionary fiscal policy will become more important to stimulate economic growth as monetary policy has become less effective. This means direct support for the real economy will increase with profound implications for inflation and long-term rates.