Glenmede Says The US Economy is 19 Percent Recovered
Glenmede, the $40 billion wealth and investment management firm, reported that 19 percent of the economy has recovered from the pandemic, and projected a market rebound in the near future, according to Business Insider.
Glenmede’s investment strategy officer Michael Reynolds and chief investment officer for private wealth Jason Pride created a “Reopening Index” based on reports from retailers, consumer service firms, businesses, and unemployment.
The duo said, “The model estimates that ~19% of economic activity that was lost due to social distancing has so far been regained. While spending appears to be recovering first, both spending and work seem to have a long way to go before returning to any semblance of ‘normal.’”
According to Reynolds, consumer spending is on the rise in retail and “low-touch” businesses. Regarding the stock market, Reynolds said, “We're more neutral weight at this point in time, recognizing those fuller valuations and recognizing that the thesis of this recovery has actually started to play out.” Reynolds added that he sees the best investments in Asia right now, specifically Japan.
Reynolds said, “We've sort of had a longer-term play here on the emerging consumer in Asia. The middle class in China by the middle of this decade is on pace to eclipse the entire population of the US, so that's a lot of demand in the pipeline for consumer products.”