This year’s risk rally rested on three pillars, two of which now have cracks: trade talks have deteriorated sharply and global growth is cooling off from an artificially strong Q1. The third pillar is standing strong: the Fed is turning ever more dovish.

Those cracks are making financial conditions less stable. Will president Trump obey the ‘reality principle’ soon enough? How to position investments through summer and beyond? 

Vincent Chaigneau, Head of Research, deals with these questions and more in our latest Market video!

Find out more: watch the video and read the latest Market Perspectives!

WET BLANKETS

Market View by Vincent Chaigneau,
Head of Research

MORE INSIGHTS

COVID-19 FACTS & FIGURES
US President-elect Joe Biden has unveiled a $1.9 trillion stimulus package proposal. Following the recent increase in cases, China has imposed new restrictions and lockdowns in the Hebei province. Canada has implemented new restrictions and a provincewide curfew in Quebec that will last until February 8. German Chancellor Angela Merkel warned that the recent rise in Covid-19 cases could force the country to prolong the nationwide lockdown until April.
EQUITIES: STAY POSITIVE WITH A VALUE-CYCLICAL TILT
Following a monster rally in stocks last autumn, multiples are well above historical averages, but equity investors can count on lingering low yields, tighter credit spreads and increasing central banks’ balance sheets which in turn maintain low the cost of equity and the discount rate of future cash flows.
Video Outlook 2021: Repair and Despair
Watch the Outlook video with Vincent Chaigneau, Head of Research at Generali Investments