SCHQ - Investing In A Frictionless World

• Anyone with connectivity can communicate, advertise and interface today with extraordinary ubiquity, and at virtually no cost. This was the case before the 2020 pandemic completely turbocharged this phenomenon, which leaves profound implications for the post-pandemic world.
• With recent announcements about positive vaccine efficacy, combined with visibility around a credible distribution plan that can eventually create herd immunity, the pandemic era is likely close to its last innings. And thanks to historic stimulus, the real economy that is emerging from this crisis has a tremendous amount of underappreciated momentum.
• Alongside of that policy-induced momentum come durable cyclical real-economy tailwinds. And supporting an already solid economic recovery is a gargantuan, COVID-19-driven, systemic build-up of cash and savings.
• The combination of a moderately weaker U.S. dollar, moderately higher inflation, a return of post-pandemic aggregate demand, a commensurate return of risk appetite, and the real growth afforded by a frictionless, costless business model could be extremely beneficial to some previously less-loved asset classes, such as commodities and Emerging Markets.

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