Peak everything — growth, inflation and COVID — may soon mean calmer markets ahead, economist says
For better or worse, we’re at the summit — of everything.
Andy Cates, senior economist at Haver Analytics, in a presentation said it’s looking like the world is simultaneously reaching peak COVID, peak growth and peak inflation.
“Many of the macroeconomic drivers of asset prices in recent times are peaking and either already moving into reverse or about to move into reverse,” he said.
The first part, COVID, is obviously welcome. He pointed to a big drop in global COVID deaths relative to cases, and the declines in South African cases and U.K. ventilations. Both countries were among the first to be hit by the Omicron variant of Coronavirus.
“A lot of the heavy lifting in the early recovery phase in the pandemic era has already unfolded. And it won’t therefore be as easy in the next few months for economic growth to surpass the pace that we’ve seen in that phase.”
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