The job of Fidelity’s Asset Allocation Research team is to think “big picture” and long-term, by understanding history and global outlooks. Dirk Hofschire, SVP, Asset Allocation Research, discusses what the team has to say about the election, COVID-19, debt and the stage of the business cycle we are in. Dirk considers the pandemic a more near-term type of phenomenon affecting the business cycle. There was a violent downturn, and then an abrupt upturn as reopening occurred. It would seem we are out of the recession, but still nowhere near previous economic growth. Some sectors (such as services and travel) likely won’t come back until there is a vaccine. There are some positive offsets, however, with people consuming more of certain products.
Recorded on September 24, 2020.