• As the world economy has already reached its pre-crisis level, an almost complete catch-up of the lost ground in terms of growth becomes more plausible. Vaccines, fiscal support and reduced restrictions should soon produce a strong economic re-acceleration.
  • Equity valuation has risen because risk perception has changed. Equities have rebounded rapidly in 2020 despite the Covid-19, encouraging investors to invest in stocks.
  • As is often the case in the aftermath of a serious crisis, investors develop a strong appetite for risk.
  • The considerable weight of the digital and healthcare sectors allowed the S&P 500’s earnings per share to return to above their pre-crisis levels as soon as in Q4-2020.
This article has been provided for information purposes only to professional clients as defined in the MiFID Directive. It must not be used for retail investors. The provision of this material or reference to specific sectors or markets in this article does not constitute investment advice or a recommendation or an offer to buy or sell any security. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. Views expressed in this article as of the date indicated are subject to change and there can be no assurance that developments will transpire as may be forecasted in this article.

DORVAL ASSET MANAGEMENT, is a public limited company with share capital of €303,025.00, having its registered office at 1 rue de Gramont, 75002 PARIS.
Dorval Asset Management, recorded under no. 391 392 768 on the Paris Trade and Companies Register, is approved as an asset management company by A.M.F. (French financial markets authority) under the number GP93-08.

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