For many of us, the summer of 2020 has been very different than past summers. Summer camps and vacations have been cancelled. I am watching shows on Netflix I would never entertain watching a few months ago. We also find ourselves figuring out what the upcoming school year will look like. Yet, I am optimistic…
Since May, U.S. economic activity has improved from historically depressed levels, highlighting that the economy was set to rebound at a solid rate as the COVID-19 incidences ebbed and stay-at-home restrictions were eased. However, a recent rise in infections has the potential to somewhat moderate this economic rebound.
The economy could still recover most of its losses in 2021 in the event that an effective COVID-19 vaccine is approved by the end of this year. However, along with what is shaping up to be a contentious Presidential election and the possibility of a slowdown in economic activity from restrictions being rolled back in certain states or cities, a cautious medium-term outlook remains warranted.
But if we look further out, we do find that times like today lead to advancements that can change and make our world better. Trends accelerate during a crisis and this one is no exception. Working from home and other remote capabilities are here to stay. Given the many global public and private initiatives to find a vaccine, I am optimistic about what the future scientific and health benefits will be in the years to come.
For example, World War II brought us many innovations during that time that are still with us today: jet engines, radar, Penicillin and the first computer, to name a few. Even the Post-It note was accidently created while scientists at 3M were attempting to develop a super-strong adhesive.
Innovation is such a powerful human trait. Even when there is no clear road map, tried-and-true leadership and perseverance can lead us to achieving the impossible. Uniting around a purpose, especially one as global as this one, has the potential to spark a generation to act. Think about the benefits of new ways to manufacture and distribute life-saving drugs and therapeutics, interact with your doctor remotely while at the same time sharing a 3D model of your heart or lungs on your device, in real time.
The way we travel, shop, eat, interact with each other, give financial advice and even help our communities will be different in a few years. Some businesses will suffer from not adopting innovation trends, but this crisis will profoundly influence the rest of our lives. Our consumer and work behavior will change, but I look forward to seeing how this current crisis may actually save lives in the future.
If you have any questions or want to have a conversation about the market or your portfolio, please contact Liz, Ed, Fred, Scott, Tyler, or myself. Your Sendero team is ready to help.
Amaury de Barros Conti
Vice President, Research & Strategy