Excerpt from Manila Times:
Recovery hopes help markets start with a pop
Agence France-Presse – Jan. 05, 2021
HONG KONG: Optimism about the economic outlook in 2021 helped investors kick off the new year on a positive note on Monday, as hopes surrounding the rollout of coronavirus vaccines offset a frightening surge in infections.
With uncertainty over Brexit and a new US stimulus gone, sights are now on the economic recovery from the calamity that was 2020, with a broad expectation that countries will enjoy strong rebounds as life gets back to some semblance of normal.
Vast amounts of government and central bank cash have been a crucial driver of a global rally in equities from their March troughs, and analysts expect loose monetary policies — particularly at the Federal Reserve — to stay in place for the foreseeable future.
“Stock markets are headed higher and they are headed higher without the old traditional valuation techniques” as long as the Fed “keeps the liquidity bubble going,” David Kotok, at Cumberland Advisors, told Bloomberg TV.
However, while the consensus is for a strong performance for markets this year, he did warn that the first quarter will likely be tough as vaccinations are administered but the virus continues to spread.
Read the full story at The Manila Time’s site: https://www.manilatimes.net/2021/01/05/business/foreign-business/recovery-hopes-help-markets-start-with-a-pop/822628/
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