• Historically, it is not unusual in a crisis that risky assets turn before data rebound. However, what is unusual is the speed of the recovery in US equities. But this is also a very different crisis as the economic rebound is much faster than during previous crises.
  • Theoretically and empirically, rising expected future growth rates will lead to stronger equities and tighter credit spreads today.
  • The lack of an effect on US stocks of the second wave of the virus reflects that it has not influenced 2021 growth expectations.
  • The underperformance of the NOK vs. the SEK during the crisis is influenced by the relative developments in real interest rates and stock markets in the two countries.

 

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