- There is a $2 trillion personal savings bubble that has built up over the pandemic. Almost half came in Q1 2021.
- The pandemic has put a $1.6 trillion hole in GDP versus the incoming trend. This mostly came from consumption.
- We are likely to see a short period of high inflation as we transition back into a more normal economy. We may be just getting into it in May.
- The post-pandemic economy and market are very much dependent on what households do with that savings. The range of outcomes is very wide.
For further details see:
Q1 GDP: The $2 Trillion Savings Bubble