Research report

The Great Reboot: Economy and markets in 2020

Markets are facing the Great Reboot with optimism, while economic data continues to reflect a historic dislocation in labor, demand and supply.

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April 28, 2020 | 10 minute read

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.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

Lara Rhame

Chief U.S. Economist + Managing Director

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