CHICAGO -- Jeff Applegate did not sugarcoat his words when outlining the current economic climate. “We’ve had a bit of a roller coaster ride the first part of this year, and there will be more to come,” says the chief investment officer for Citi Global Wealth Management. “This is the worst global recession in 60 years.”

However, we may have already seen the worst, adds Applegate, who addressed attendees of the Global Automotive Aftermarket Symposium (GAAS).

The country has went through the third most severe equity bear market in recent history (with two 50-percent bear market drops over the past decade), but the industry should take note that the forward one-year return looks pretty robust, and market declines and market recoveries are generally symmetrical.

U.S. and global equities reached their low point in March, adds Applegate. “Since that time, U.S. and global equities are up 31 percent since March 9.”

Although the federal government is involved in banks, vehicle manufacturing, insurance and other key industries, Applegate says, “A lot of the exit strategy is embedded in the Fed’s repair strategy.”

He says Federal Reserve Chairman Ben Bernanke spent his academic career studying what the Fed did wrong in the 1930s, something that helped prepare him for the current financial situation.

Federal plans to stimulate the economy are steering the marketplace in the direction of “policy first, market recovery next.” “We’re now happily at the point in the cycle where we’ve moved from policy initiatives to seeing the positive market response to these policy initiatives,” adds Applegate.

He says the Fed’s balance sheet is going to $5 trillion, a significant chunk of the $14 trillion economy.

And there are bright sides to our economic climate, says Applegate. For example, 30-year fixed rates are now lower than at anytime in U.S. history.

Globally, developed countries are in recession, while developing countries are experiencing a slowdown in growth, revealing a sizeable disparity between the two types of nations. 

Applegate projects inflation to be zero this year, with a 1-percent inflation rate next year.

For those still afloat amid the rising tide of debt and uncertainty. “If you feel like you’ve been through the wringer financially and economically, you have,” says Applegate.