Insight

Uncommon truths - Will tapering ruin our Covid memories?

3 May 2021
Paul Jackson
Paul Jackson
Global Head of Asset Allocation Research
Andras Vig
András Vig
Multi-Asset Strategist
Uncommon truths

The peak-end rule suggests memories of events are dominated by the moment of peak emotion and the end. We use the VIX as a measure of pain during the pandemic and look ahead to tapering.

What will be your memory of the Covid experience? Of course, we have all had very long, personal and sometimes painful experiences but the duration may have less effect on our recollections than you might believe. Indeed, there are good theoretical reasons for believing that how it ends will have an important influence upon our memories (of which more later).

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