Global equities bounce back: Is an economic recovery underway?

To many investors, an economic recovery appears to be underway.

Buoyed by the initial surge in demand as countries reopen and recent positive data releases, global equities have rebounded strongly with the MSCI ACWI (USD) up 18.7% for Q2 2020. However, we believe that the initial benefits felt by the global economy on reopening will not last. From here, gains could be harder to come by, meaning that a slow recovery is likely.  However, governments are still providing huge support for the economy. While there is still much debate over the exact package, US Democrats and Republicans agree that infrastructure spending is necessary. We expect this ...