Market Compass March 2021
- Despite stretched investors’ positions and residual risks from Covid-19 mutations, the Spring rebound to support favourable financial conditions.
- Fears of soaring US inflation pose risks for fixed income.
- Equities should prove resilient, but the pick-up in real yields deserves to be watched, especially for the impact on highly valued risk assets.
- Overall, we maintain a moderate pro-risk tilt in our portfolios, with potential equity setbacks providing buying opportunities into a broader ‘Spring reopening’.