Page 9 - Newcom

YOUR GUIDE TO SALES AND FINANCIAL PLANNING
BUILDING YOUR BUSINESS
PAGES 9-12 l INVESTMENT EXECUTIVE l JANUARY 2021
INSIDE THIS SECTION
INVESTMENT
EQUITIES 11
Opportunities exist around the world.
FIXED INCOME 11
Keep a careful eye on inflation.
INSURANCE
NEW LIMITS 12
Higher non-medical maximums could be made permanent.
PRACTICE
CHIN UP 12
How to boost your stamina after a tough year.
Economic recovery looks K-shaped in many countries
Furthermore, most countries will take a number of years to get back to pre-pan- demic output levels. Forecasts for closing the output gap — the difference between what an economy is and could be produ- cing — range from early 2022 to some- time in 2023, with a lag of 12 to 18 months before jobless rates return to pre-Covid levels. Companies don’t hire until they are sure stronger demand will be sustained.
As a result, interest rates are likely to stay low, which means the next 12 to 18 months could be the “sweet spot” for equi- ties for this decade, said Sébastien Lavoie, chief economist with Laurentian Bank in Montreal.
The strong equities market means
> TURN TO THE FED / PAGE 10
The pandemic has exacerbated income inequality, and many low-wage workers have no job to return to
l BY CATHERINE HARRIS receiving vaccines as quickly as expected.
New Covid-19 mutations are spreading. Meanwhile, Covid fatigue is setting in even as many jurisdictions have recently extended and expanded restrictions.
with covid-19 vaccines being
administered, many economies should pick up steam in the second half of this year. That momentum is expected to con- tinue in 2022, with financial markets and
housing also expected to remain strong. However, there are a lot of down- side risks in the next six months, said Craig Alexander, chief economist with Deloitte LLP in Toronto. People aren’t
ISTOCK.COM / MELPOMENEM