• The key ingredients are likely currently in place for global financial markets to continue discounting the recovery phase of the credit cycle.
  • With Covid-19 vaccine distribution underway, the US government is expected to deliver additional fiscal support, and monetary policy is likely to remain highly accommodative for several years to foster economic growth and broad labor market improvement.
  • Global developed market yield curves should remain anchored at the front end, but longer-term yields could drift higher as the recovery takes hold.
  • Foreign currencies could potentially outperform the US dollar as the global economy recovers.
  • Equity performance is likely to be more balanced in 2021 – a rising tide could lift equity indices across global regions and sectors.