FROM THE GLOBAL CIO OFFICE - By Candice Bangsund, Vice President and Portfolio Manager, Global Asset Allocation
The fastest bear-market recovery in history showed little sign of wavering in August. Investor optimism remained buoyant on signs of progress in developing a vaccine to quell the pandemic, which helped to instill confidence in a swift global economic revival. Meanwhile, the sheer abundance of policy support and the conciliatory tone on US-China trade also emboldened risk appetite during the month. Importantly, the Federal Reserve’s prominent policy shift rippled across financial markets after Chair Powell unveiled an average inflation targeting regime that will allow for a more relaxed approach towards inflation and consequently, an extended period of monetary accommodation – providing yet another tailwind for the global economy and stock markets alike.