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What the recovery might look like post COVID-19

Brandywine Global Investment Management, LLC

Topical Insight | June 11, 2020

By Stephen S. Smith, Managing Director & Portfolio Manager

We have been thinking about the coronavirus in terms of time. At this juncture, we want to know how quickly economies will reopen, and in particular, how long it would take for the U.S. economy to normalize to a pre-coronavirus peak. In order to answer this question, we’ll be observing and measuring any rebound in consumption and inflation amidst a backdrop of structurally high unemployment. The period of time this takes and the related rate of change will eventually determine what happens when the U.S. economy reaches a tipping point.

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