Early Christmas gifts to support year-end rally
Friday 27 November 2020
Global Investment View
The other positive news came from Pfizer/BioNTech and Moderna, regarding the high efficacy of their vaccines, while other trials are also accelerating.
However, both news brings some shadows as well. Markets are underestimating that Biden will have to concede something to the more radical section of his party. On vaccines, we need a confirmation from the scientific community that they work. In addition, development of vaccines for a large portion of the population is challenging.
As we approach year-end, markets can count on two pieces of news to propel some optimism. The first comes from the US, where the Biden victory, without a real Blue Wave, is seen by markets as the best possible outcome. A Republican, or even a 50-50 senate, would make it very hard for the new president to pass any extreme measures in terms of fiscal push, more drastic legislation or tax increases.
Stay agile amid high uncertainty
Markets have fluctuated between positive news around geopolitics (US-China trade talks, Italy and receding risks of no-deal Brexit)
Infographic - Global Investment Views August 2019
Glass Half-Full, Thanks To Central Banks
Global Investment News July 2019
Central banks fuel markets: illusion vs realityThe journey from market complacency to awareness of fragilities is in full swing, and the market correction in May is part of that, as is the recent recovery fuelled by dovish Central Banks (CB).