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Lyxor Cross Asset Research Q4 2020 : Mind The Gap

The economic recovery has further to go but its momentum could lose traction in Q4. The virus remains uncontained. Better preparation could prevent large-scale shutdowns but restrictions would persist until a vaccine is available some time next year. Lost jobs and businesses would also cap the recovery. Stimulus would continue to provide a powerful backstop but the marginal benefit from monetary injections is stalling. Instead, fiscal stimulus would be in the driving seat...

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