Beyond Covid: Better Times Ahead
Global Market Strategist Esty Dwek discusses prospects for growth, returning to normal, and the risks ahead in the new year.
- With Covid-19 vaccines now a reality, the logistics of distribution will be the next challenge.
- Some sectors will recover quickly, but others, such as business travel, may never fully recover.
- The fundamentals should remain supportive for equity markets, and the rotation from defensive to cyclicals will likely continue.
- In fixed income, sovereign yields are likely to rise gradually but the search for yield will remain.
- While the growth outlook is generally improving, we will see divergences between China, Europe and the US.
- From a policy standpoint, fiscal stimulus will be key.
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