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By Mark DOWDING, CIO at BlueBay Asset management
Paradoxical forces meet to determine whether economics will uptick in 2021 or if declining market confidence will force further stimulus measures.
A slow path out of economic lockdown has seen ongoing downward revisions to growth forecasts as it becomes increasingly apparent that measures pertaining to social distancing will continue to be disruptive for the foreseeable future. In the absence of positive ‘new news’ with respect to a vaccine for Covid-19, it seems that worries related to a second wave of infections are inevitably going to mean that risk-averse policymakers are inclined to tread a cautious path unless, or until, the economic pain being inflicted becomes too much to bear...
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