After the pandemic driven rout of equities in Q1, stocks and bonds staged an impressive recovery in Q2 as central banks and governments fired up the printing presses and economies started to reopen. As people started venturing out from the Covid lockdown, economic data has indicated a sharp rebound. Statistics such as US retail sales rose 17% month on month in May, and weekly claims for unemployment insurance slowed substantially from April to May.

While the US economy officially entered a recession during Q1, fears of a worst case scenario of the Covid crisis morphing from a toilet paper run into a bank run have apparently been avoided.