SUMMARY. Interest rate cuts & money printing may not have any short term impact on economic growth, but may longer term. A cure to the virus would in the short term. However, post either a cure (more likely before Spring) or an abatement in cases (less likely until Spring) rate cuts or additional money printing may additional fuel to economic growth into 2H20 & 2021.
INVESTMENT IMPACT. We continue to weigh the above in continuing to selectively increase our equity exposures. Our view is the virus impact on growth is temporary and may lead to accelerated growth in 2H20 into 2021 especially as monetary policy loosens further.
For more insights see our website and disclosures found there at BCA. As always contact us for further explanation of how these events can effect your finances.