What’s ahead in the second year of Covid-19?

‘When COVID-19 began its insidious march across the globe more than a year ago, it disrupted every industry and forced fast innovation as business leaders worked to adjust to a new world order. Last year, in Wharton’s Fast Forward video series, several of the School’s faculty offered their insight into what the second half of 2020 would look like during the pandemic. That insight is needed even more this year as the ground keeps shifting, vaccines are rolled out, and new coronavirus mutations emerge.

‘Much has changed since the start of the pandemic, from consumer behavior to health care delivery to working from home. What changes are lasting? And what lessons have we learned? We’ve asked some of our faculty to analyze what’s in store for the rest of 2021. Their responses appear below:

• Will working from home become permanent for nonessential employees?
• What’s the outlook for the stock market and the economy this year?
• How will the pandemic continue to change the delivery of health care in the U.S.?
• What crisis management lessons will business leaders keep going forward?
• What changes in retail and shopping will become permanent?
• What is the future of the gig economy in the U.S.?

Read here (Wharton@Knowledge, Mar 8, 2021) 

The Covid bubble

‘When it comes to this year, growth may yet fall short of expectations. New strains of the coronavirus continue to emerge, raising concerns that existing vaccines may no longer be sufficient to end the pandemic. Repeated stop-go cycles undermine confidence, and political pressure to reopen the economy before the virus is contained will continue to build. Many small- and medium-size enterprises are still at risk of going bust, and far too many people are facing the prospects of long-term unemployment. The list of pathologies afflicting the economy is long and includes rising inequality, deleveraging by debt-burdened firms and workers, and political and geopolitical risks.

‘Asset markets remain frothy – if not outright bubbly – because they are being fed by super-accommodative monetary policies. But today’s price/earnings ratios are as high they were in the bubbles preceding the busts of 1929 and 2000. Between ever-rising leverage and the potential for bubbles in special-purpose acquisition companies, tech stocks, and cryptocurrencies, today’s market mania offers plenty of cause for concern.’

Read here (Project Syndicate, Mar 2, 2021)