PineBridge's Soon: Consumer spending, supply chain logistics and China's lockdown

During the 2008 Global Financial Crisis, recovery was largely in the hands of the governments bailing out troubled companies and providing liquidity to the system.

Today, recovery depends on the containment of a global pandemic and the development of a vaccine. Demand cannot improve until consumer spending and capital expenditures return.  Two elements led to the stockmarket behaving as it did. The first was disruption to supply chain logistics caused by China's lockdown, which subsequently spread to other parts of the world.  The second was the decline in demand as the virus spread globally, effectively stalling growth.  These two factors, coupled with uncertainty about the future, have subsequently led to knock on effects of continued volat...