A bumpy recovery for the economy

Inflation has been spooking markets, but the surging Delta variant poses a much greater risk

Chancellor of the Exchequer Rishi Sunak
Chancellor Rishi Sunak: hoping for no U-turns
(Image credit: Jacob King/WPA Pool/Getty Images)

Many of us have fallen into the trap of black-and-white thinking during the pandemic, said Michael P. Regan in Bloomberg Businessweek. “The scintillating vision of the dark era of Covid lockdowns quickly giving way to a bright vaccinated future was simply too enticing to resist.” But the reality, as the virus stages a fresh assault, is a much less satisfying “grey area”. Stock markets have been reflecting the mixed message, presenting two visions of a recovery – one optimistic, one bumpy – in the same week. Prices lurched sharply downwards on Monday, but investors returned the following day determined to “buy the dip”. It looks like the pattern of things to come in what’s likely to be an “interesting” quarter – guaranteed “to test your stomach”.

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