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Consensus estimates are for nominal GDP growth to rise into the 6% to 10% range for 2021 and 2022.
Markets are struggling with the uncertainty that this huge growth rate creates, Merrill Lynch says.
The firm s strategists shared sector and asset-class picks for the market environment ahead.
The US government s aggressive policy response to the pandemic most likely ended a 20-year period that was characterized by a low average nominal GDP growth rate of about 4%, said Lauren Sanfilippo, an investment strategist at Merrill Lynch.
In a recent note to clients, Sanfilippo illustrated just how unusual the response was, and laid out the stock-market impact it s likely to have.