Using 2020 Hindsight: The Emerging "New Normal" Picture
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Despite the weak economic data, the equity market ended the year at all-time highs. The S&P 500, at 3,576 was up 10.5% for the year after falling 34% in the February/March period, quite the reversal.
The current market mantra is that, with the vaccines now in distribution, and despite issues there, by spring/summer consumers will feel confident enough to return to some pre-pandemic spending habits, and second half 2021 economic growth will be "V" shaped. Given the data, this looks like wishful thinking.
