Recessions are a normal part of the business cycle. After periods of sustained maximum growth it's not uncommon to see economic growth pull back before the next expansion. However, the COVID-19-induced recession is more of a managed recession -- a recession created by government policy to control the spread of the coronavirus pandemic. Subsequently, this recession is an outlier as it simultaneously impacted both the supply and demand parts of the economy. Social distancing has worked to reduce both the number of cases and deaths caused by this virus, but unfortunately these same efforts have led to mounting economic costs.
Cetera Investment Management’s latest commentary discusses three predictions for the rest of 2020:
1. A U-shaped economic recovery
2. Elevated market volatility (but a retest of new 2020 lows is unlikely)
3. A potential rotation of companies and sectors that lead markets forward.
Click HERE to read the full commentary.
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The Manhattan Rider Advisors Team