Macro views

Macro update - Adjusting to the new normal

Steven Bell rounds up the month’s economic news and answers your questions on the outlook for financial markets.
May 2020

Steven Bell

Managing Director, Portfolio Manager & Chief Economist, Multi Asset Solutions

Share
Subscribe to our Insights

Risk Disclaimer 

Views and opinions expressed by individual authors do not necessarily represent those of BMO Global Asset Management. The value of investments and any income derived from them can go down as well as up and investors may not get back the original amount invested. The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

  • Adjusting to the new normal – there is still a great deal of uncertainty, but that creates investment opportunities. These opportunities are intrinsically linked to the progress of recovery from the virus and what this means for global economies.
  • The global recession that we are facing is likely to be deeper than any previous recession, including the Great Depression. A key differential is that this recession has affected the services sector much more than manufacturing, which is the reverse of the typical recession pattern.
  • If the easing of lockdowns go smoothly, we will still have a huge hit to corporate earnings in the current quarter, with progressively smaller declines for Q3 and Q4, and positive increases year-on-year in 2021.
  • We will continue to watch the virus numbers closely, and although there have not (yet) been any second waves in ‘early easers’ such as Denmark and Austria, it is still very early days for the UK and the US.

Risk Disclaimer

Views and opinions expressed by individual authors do not necessarily represent those of BMO Global Asset Management.

The value of investments and any income derived from them can go down as well as up and investors may not get back the original amount invested.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Webinar recording 

Chief Economist Steven Bell examines the outlook for an economic recovery. What will change after the virus and what will stay the same? After all the recent ups and downs, what’s next for markets?

 

Related articles

No posts matching your criteria