Subitha Subramaniam, chief economist at Sarasin & Partners, looks at the four trends investors can expect to see in a post-pandemic world.
Covid-19 has brought the world to a standstill and disrupted every facet of our lives. Our best guess is these disruptions will continue at least until the summer of 2021.
But what kind of economy will emerge in its wake and what will the ensuing landscape look like?
Deep recessions meaningfully change economic outcomes. After the Global Financial Crisis (GFC), central banks embarked on financial repression - which included the aggressive suppression of interest rates, increased regulation of banks and ringfencing of capital markets.
While this boosted asset prices, it accentuated the prevailing wealth and income inequity, fuelling a movement in favour of policies aiming to 'level up' those who fared less well post-crisis.
The scale and duration of the Covid-19 disruption will likely accelerate many of the long-term trends already underway - financial repression, walled gardens and levelling up - while bringing forward new ones.
The gallery above shows four features we can expect to see in the post-Covid world.