Long Covid

OpinioPro Selection
By November 22, 2021 12:39

Long Covid

In the short term, we are concerned that confidence in the growth outlook will wane, particularly given the recently weaker data in China, ‘stagflation risk’, and an earnings season dominated by the ‘margins squeeze’ story

VIEWS & ASSET ALLOCATION

Visibility on the outlook has deteriorated and selected risks have increased. We believe, however, in the supportive base case that continues to favour equities over government bonds. Growth should strengthen as Delta infections and inflationary pressures wane, while central bank support should recede only slowly. 

At the beginning of the third quarter, the hope was that the Delta wave would eventually subside and the economic recovery could resume. These hopes have been largely unfulfilled as worsening supply chain and labour market bottlenecks have hindered the recovery and the impact of the virus has lingered. Consequently, market expectations for third-quarter eurozone and US GDP growth have fallen over the last several months (see Exhibit 1). 

OpinioPro Selection
By November 22, 2021 12:39

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