The rapidly increasing administration of COVID-19 vaccines, coupled with the imminent flood of fiscal stimulus from the American Rescue Plan Act, has generated widespread expectations that the US economy will boom in the second half of 2021. Along with that optimism, however, comes concerns that inflation could spike, at least in the short term. In the Q&A below, Sushil Wadhwani, chief investment officer of QMA Wadhwani and former member of the Bank of England’s Monetary Policy Committee, offers his thoughts on the inflation question and what an uptick in pricing pressures could mean for the performance of risk assets.
This conference looked at whether the COVID crisis has had a pervasive impact on the investment landscape in the short and long term, and asked delegates to question whether some of the investment assumptions used in the past are still applicable in the future. It also looked at the influence of the COVID crisis as an accelerator for certain key themes driving markets; examined the way business is conducted and decisions are made; and tried to predict the impact of technological innovation on businesses, the way we work and the future of the global economy. Importantly it challenged investors to think about what needs to change, and hasn’t yet, and how the crisis can be a catalyst for new and improved business practices and investment allocations.