Confidence is high in the US thanks to strong vaccination rates. What will the new normal look like though? Offices could re-open by summer, but how much will we continue to work from home? And how much will we travel for business? Supply chains are still bottlenecked, leading to inflation pressure. The blockage of the Suez Canal won’t help that
Succinct Summary: Capital markets are ending 2020 with a bang thanks in part to last week’s hot IPOs. Business leaders are feeling confident about 2021 and expect next year’s earnings to exceed 2019’s. Consumer spending is similarly strong. Even the housing market is stronger than in ’05. It’s a K shaped recovery for some industries but a vaccine should unleash pent up demand and high unemployment means that interest rates will stay low for longer. Readers should keep an eye on growing supply chain bottlenecks. This could be a source of some inflationary pressure.
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