Chris Wallis, CEO, CIO and Senior Portfolio Manager at Vaughan Nelson Investment Management and Dan Hughes, Client Portfolio Manager, delve into what economic indicators may be telling us about the COVID-19 recovery, along with stock market implications.

  • We’re still in a growth cycle upturn on the industrial side, and that recovery should continue. On the services side, it’s going to be a difficult slow recovery.
  • The full impact of government stimulus has not yet been realized. We sent the stimulus out before the damage occurred. We actually saw a very material increase in real disposable income in the first and second quarter. This is set to reverse. So I think there’s going to be some real headwinds.
  • Temporary layoffs that we’ve seen are going to become permanent in large parts of the economy. This will be reflected in small businesses that will not be able to survive.
  • The silver lining in all of this is that the US gets a chance to reshape its economy. If we can do it in a productive fashion it could provide job opportunities and positive real growth for the economy going forward.
  • Companies whose management have been able to give guidance for 2020 and even into 2021 have been able to restore investor confidence.

For more insight, watch this video with Chris Wallis:


Related Articles

Global Market Strategy

Natixis Investment Managers Solutions latest thinking on what’s moving markets.

Market Outlook: Why Inflation Worries May Be Exaggerated

Macro specialist Esty Dwek looks at interest rates and inflation risk amid the Covid-19 vaccination effort and economic recovery.

The Glass Ceiling, Piece by Piece

An interview with Soliane Varlet Senior Portfolio Manager of the Women Leader Equity Strategy and Mathilde Dufour, Head of Sustainability Research.

  • March 30, 2021
Biden and the Paris Agreement: What Rejoining Could Mean for Investors

The US has officially rejoined the Paris Agreement on climate change, signaling a broader focus by the Biden administration on sustainability issues.