The New Economy Roll-out

ETF Research & Analytics Team

ETF Research & Analytics | A function of the ETF corporate think tank.

In the aftermath of what is left of 2020, it seems that artificial economic global shutdowns are reaching a halt while the new face of how the economy will look like is coming to fruition. Yes there has been substantial stimulus and money printing by the U.S. and its E.U. counterpart, and yes there has been different fiscal and monetary policies as mitigating measures but the short term solution and method of bracing the artificial economic shutdown will be short lived. We will step away from anticipating a U.S. dollar collapse as we understand that if China is buying and owns a major chunk of the U.S. debt the dollar will still hold value.

As Third World Nations and even the once rich GCC have struggled supporting its local economies partially triggered by oil price downfall, at least pertaining to the GCC, this gave us the indication that yet again this part of the world will be following lead of the global economic and dynamic trends of which we will briefly discuss.

Today we see a strong indication that internet, technology, and cost sharing are the three new pillars for any business success going forth. This poses a big challenge to Small and some Medium Enterprise as the three pillared business model referenced applies best to large caps. Looking at Amazon, Facebook, and Google it would make sense the best. These companies have posted profits in the quarters during and after the pandemic while retail and other big business had suffered the most. The question remains on how small business will survive. The numbers are yet to emerge reflecting over the actual mutilation that many SMEs have sustained.

Considering small business being the backbone for many economies around the globe it is interesting to watch the new economic model roll-out while paying attention to underwriters and commercial banks and how their business models will also shift!