Year in Review – Twelve Months ended March 31st, 2021
The pandemic had momentous impacts on every aspect of our lives. In addition to the tragic human toll taken by the virus, the economic and financial effects were felt throughout the year, and will be for many years to come.
The virus and the lockdowns produced a stunning economic collapse in spring 2020. The nosedive led to numerous governmental responses. The Federal Reserve cut interest rates and flooded the economy with liquidity. Additionally, the fiscal response was breathtaking in its magnitude and scope. Although most of the measures were ostensibly taken to support the economy, in the end the greater effect was on the financial markets. Government support and Fed policy probably had more influence on asset prices than factors such as economic health, corporate developments, or the elections.