With selected research partners, we explore the future of risk coverage, assess changes in the risk landscape and act as a catalyst for industry change.
The global economy is set to bottom this quarter. For the financial markets, COVID-19 already seems to be a distant memory. What's the disconnect?
Key takeaways
US risk assets have rallied since March, even though the contraction in economic activity in the second quarter is likely to be more extreme than in the first. A number of factors can explain the seeming disconnect between the performance of risk assets and the real economy. For instance, monetary policy supports financial markets but less so the real economy. Also unlike economic indicators, financial markets are forward-looking. And last but not least, the composition of the US stock market and economy differ greatly.
Economic Insights, direct to your inbox
Our Economic Insights series looks at current economic topics and their implications for the re/insurance industry.
Subscribe to receive each edition of Economic Insights.
Economic Insights
Going separate ways? The disconnect between macro and markets
Contact
sigma research
Our data driven research publications, including the industry leading sigma, enable risk focussed decision making and identify strategic opportunities in the re/insurance industry.