Markets are facing the Great Reboot with optimism, while economic data continues to reflect a historic dislocation in labor, demand and supply. Making sense of the challenges the economy will face as it reopens has critical implications for investors.
With the current economy in deep contraction and shelter-in-place orders set to continue – yet COVID-19 still a roaring health crisis – it’s hard to imagine a time in the near future where it will feel fully safe to reenter the world at large. Similarly, it’s hard to imagine watching the economy’s continued destruction without a plan in place.
In this report, we outline three possible reboot scenarios and their implications for the economy and markets.