January - February, 2021
Key Highlights
• US Elections outcome, Brexit deal and availability of new vaccines were big boosts for global markets.
• Newly available vaccines from AstraZeneca and Moderna will furhter protect weaker brakets of populations, speeding return to normality and therefore spending.
• Consumers and companies adapted themselves on the current pandemic-state of restrictions and lockdowns.
• Equity is still preferred even if in the short-term they are overbought with high valuations.
• Preference for cyclical and quality value stocks.
• Preference for sectors with a sustainable economic growth, earnings under recovery and with promising valuations: consumer discretionary, financials, industrials, materials, etc.
• Faster recovery in the US and China compared to the Eurozone.
• Inflation target will most likely rise in the following months but will not be a menace to the economic recovery.