Director of Global Macro Jurrien Timmer believes that a vaccine has the potential to help us return to normal in 2021. Going into the election, the focus was on the number of COVID-19 cases and a stimulus package (more cases would require more stimulus), but we have positive news on a vaccine and renewed momentum for another fiscal bridge (of $908 billion). We can now say that what appeared to a total disconnect between markets and the economy in April was not a disconnect, but the market’s anticipation of an economic recovery. There is still a gap, but Jurrien believes the market is fully valued in anticipation of a full reopening in 2021.
Recorded on December 7, 2020.