Converging and Diverging Trends Stemming from the Crisis
Charles Schwab & Co.
Across industries, companies and people, the post-COVID re-opening has had its winners and losers. The “K curve” economy is widening existing disparities and creating new ones. “The initial phase of the COVID crisis channeled aspects of many past calamities—the Great Depression in size, the stock market crash of 1987 in speed, and the 9-11 attacks in fear,” says Liz Ann Sonders, Senior Vice President at Charles Schwab & Company. “With the benefit of hindsight, we know that some groups and industries were much better suited to handle that bitter combination; while others now face threats to their long-term survivability.” Massive increases in the money supply have been offset by flatlining monetary velocity. “While the world continues to make progress on the vaccine front, which in turn is raising hopes of a return to some kind of normal, we remain in the ‘creative destruction’ phase of the recovery,” Sonders says.
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