Vanguard economic and market update

27 August 2020 | Markets and Economy


 Vanguard economic and market update

Vanguard's key points:

  • The initial stages of recovery from the Covid-19 pandemic in the US, Europe and Asia have been slightly faster than anticipated.
  • However, we expect the pace of recovery to slow later in the year, meaning monetary policy should remain loose well into 2021.
  • Inflation is picking up, but we don’t expect this to be the start of a meaningful trend.
  • Trade has bounced off its lows, with our index of leading indicators increasing for a third consecutive month.

These points represent the house view of the Investment Strategy Group’s (ISG’s) global economics team and other experts as of 18 August 2020.





For professional investors only (as defined under the MiFID II Directive) investing for their own account (including management companies (fund of funds) and professional clients investing on behalf of their discretionary clients). In Switzerland, this document is directed at professional investors and should not be distributed to, or relied upon by retail investors.

The material contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this document when making any investment decisions.

The material contained in this document is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority. Issued by Vanguard Investments Switzerland GmbH.

© 2020 Vanguard Asset Management, Limited. All rights reserved.

© 2020 Vanguard Investments Switzerland GmbH. All rights reserved.