“As goes COVID-19, so goes the nation.”
Paraphrasing the famous 1950’s dictum on General Motors’ relationship to the welfare of America highlights how the coronavirus has hijacked all aspects of the economy.
There’s consensus that once the disease runs its course, commercial activity will come back. It’s also agreed that between now and then GDP will be negative, perhaps alarmingly so. What’s not clear is how sharp or long the downturn will be. Or whether the recovery will be weak, temporary, or pick up where February left off.
For guidance we turned to Brian Nick, Nuveen’s chief investment strategist. Brian is a frequent commentator on top media outlets. He kindly offered to help our readers understand better the current economic and markets dynamics:
TLL: Brian, thank you for taking the time. First, let’s talk about job losses. You’ve said these feel like the tip of the iceberg. How bad will it get before we’re done?