Summary
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The current environment represents a unique episode in investment history, combining aspects of the Great Depression, the tech bubble, and the great financial crisis.
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In spite of U.S. economic weakness, the Federal Reserve remains a powerful force and is influencing markets by expanding its balance sheet and buying securities of mega-cap, global companies.
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Trillions in fiscal and monetary support have pushed many asset classes to near pre-COVID price levels, erasing much of the losses experienced during the epic March downdraft.
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Given the abundant risks in the market and the range of possible outcomes, the recent rally provides a unique opportunity for investors to re-evaluate their asset allocations.