Global markets have been pulled down by the grip of COVID-19 during the first three months of 2020. Earlier this week, U.S. Fed Chair Powell noted, “The depth and the duration of the economic downturn are extraordinarily uncertain.”
Most independent economists do not have overly optimistic views on seeing an economic bounce-back occur in any immediate timeframe. Some projections appear hopeful that economic growth will begin in the second half of 2020, yet it remains anyone’s guess.
Whether a pessimistic or optimistic view, the crystal ball outlook remains opaque. Only time will tell if the impacts from COVID-19 will be short- or long-lived, if economic damage is recoverable or permanent, and if we will experience a V-shaped (quick), U-shaped (midterm), or a Nike® Swoosh®-shaped (longer-dated) recovery.
VRC continues to monitor the daily economic environment and consider the market impacts on valuation. We have just released an update to our quarterly Economic Snapshots in 16 major economic markets to provide you with an at-a-glance visual summary of the current economic and financial indicators.
We welcome your questions and concerns about valuation impacts on your financial or tax reporting requirements, as well as any details you may have about an upcoming valuation engagement need. A VRC valuation professional will reach out to upon receiving your inquiry.