MATCO'S QUARTERLY MACRO OVERVIEW – Q4 2020
In years to come, when people look back on 2020 it will be remembered as one of the most challenging years in the modern era.
The COVID-19 pandemic was at the forefront, with social inequality protests and the U.S. election also having a significant impact on this tumultuous year. The investment markets were not immune to the chaos, with considerable turbulence followed by a rather orderly recovery. Although moving on from 2020 may be at the top of everyone’s New Year’s resolution list, we would like to take a second to recap the developments that have brought us to where we are today. Back in March of this year, the COVID-19 pandemic began to spiral out of control, with global infections on the rise causing the most significant economic lockdown in almost a century. Individuals around the world began to work from home, global travel was halted, social, and cultural events were put on hold and businesses shut their doors. The initial shock of the pandemic caused global equity markets to trade lower by 30% to 35%, with investors wondering how deep the sell-off could go.