Despite working in the financial services since 1990, I’ve never looked back on a year like 2020. It was a year that presented unique challenges to families, companies, governments, markets and investors around the world.
Consequently, the unprecedented events we’ve all lived through this year are likely to shape markets, and our daily lives, not just in 2021, but for many years to come.
Since 1982, it has taken an average of almost four years for the U.S. economy to fully recover job losses and to establish new records of output. After the 2007–2009 Global Financial Crisis, it took even longer – six years. How long will this economic recovery take?
A brief look at history is warranted here. With the 2000 tech bubble and the 2008 financial crisis, we saw deep, cyclical recessions based on systemic failures in the financial markets. Too much risk-taking was a prominent feature of both downturns.
As you know, the market has been on a record tear since late March 2020. Literally setting records for the fastest recovery, the record size of the gains, and the record highs being made, to name just a few.
In spite of all the records being set, there’s reason to believe that this bull move is just getting started.