Economic Market Update: June 15, 2021

Will the nascent economic cycle look similar to recent historical cycles, seeing a long, sustained period of economic growth and low recession risk? We examine the initial financial conditions present at the onset of the recovery from the COVID crisis to explore how this cycle may differ and what the rapid recovery could mean for the global economy and markets. In particular, we examine the swift rebound in the stock market and answer a common question we are hearing more and more – are there signs that a financial bubble is developing?

Key Takeaways:

• The current economic cycle could see higher growth rates, but as a result risks being shorter in duration than recent expansions
• Financial conditions at the onset of this recovery are substantially strong than the historical average
• Monetary and fiscal policy are likely to remain highly accommodative in the near-term