Vanguard economic and market update

27 August 2020 | Markets and Economy

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 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.

 

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

© 2020 Vanguard Investments Switzerland GmbH. All rights reserved.

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