America Inc has survived the oddest year in modern times. What next?
Stockmarkets are pricing in an economic snap-back and growth on top of it. That may be too rosy
BEFORE THE covid-19 pandemic investors favoured companies with strong sales growth, low debt and high return on assets. In the past three months, they have been ploughing money into smaller, underperforming firms that have barely survived the coronavirus recession. A robust economic recovery, Wall Street seems to think, will pull the most covid-impaired away from the abyss and towards financial outperformance. Right now, says Jonathan Golub of Credit Suisse, an investment bank, “the market is rewarding failure”.
This article appeared in the Business section of the print edition under the headline “Harbingers of boom”
Business February 13th 2021
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From the February 13th 2021 edition
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