The Rubber Hits the Road- Real Vision Daily Briefing - Oct 28 , 2020
Real Vision senior editor Ash Bennington is joined by managing editor Ed Harrison for a special edition of the Daily Briefing.
- U.S. and European equities have continued to tumble, and the halting of economic activity in Europe will likely cause a double dip recession that is very bad for risk assets.
- The volatility we’re seeing now is being driven more by the dynamic of shutdowns in Europe than uncertainty around the impending U.S. election.
- Full-scale lockdowns are economically and politically unviable in the U.S. so the public health outcome is likely to be more severe.
- The tail risk of a double dip recession in the U.S. increases markedly because the U.S. is unlikely to take swift policy action.
- Amid the dip in markets, Pentair and Ford have beat earnings expectations, showing that there are companies that will outperform and places to hide in the market.
- The macro paradigm perspective of what’s going on in the U.S. is there will be no stimulus anytime soon, limited or no shutdowns, and the Fed will have to ride to the rescue against the backdrop of the insolvency phase of this particular cycle.
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