Sightline Conversations: Interpreting the Disconnect Between the Markets and Economy
Investors have had their eyes on the headlines recently, with both positive and negative news emerging over recent weeks. The European Union finally announced its economic package last week, both new and existing housing sales soared in June, and retail sales are increasing drastically since the onslaught of the pandemic. However, on the other side of the spectrum, an increase in COVID cases and reopening reversals in new hotspots has led to rising U.S. unemployment claims and one of the sharpest GDP drops during a recession in the country’s history.
In their latest conversation, Sightline’s Paul de Sousa and Warren Gerow examine COVID’s latest effects on the economy and markets, and what it may mean for investors. Specifically, de Sousa and Gerow discuss:
- An overview of the markets and economy over the past few weeks
- How COVID-19 is changing consumer behaviours
- The continued disconnect between the economy and the markets
- The changing monetary definition of inflation and its effect
- Financial repression and the multitude of ways governments can get out of debt
- The fundamental reason behind gold’s surge
- The importance of patience during this unprecedented time
Warren Gerow is an independent investment wealth consultant to Sightline Wealth Management.
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