Markets are priced for perfection in a very imperfect world. As stocks hit new highs, are the bulls or bears correct? Politics are likely to be the major influence on where we go next, but lurking around the next corner might just be inflation.
Markets look set to rally strongly into Q2, but are they over-exuberant? The rise in deaths and new strains in Brazil hints the Covid war isn’t won yet, there are rising political risks in Europe, and widening wealth inequality is apparent everywhere. Just how solid are our expectations of stability, renewed global travel and recovery if Covid is here for the long-term?
As Q1 wends to a close the threat of global recovery and higher rates overhang markets! Meanwhile, the market has spawned a whole new class of stocks: Trend Stocks - based on what we collectively believes about the future. Non Fungible Tokens (NFTs) look set to benefit from Trend Stock status!
The UK should be flying high on the success of the vaccination programme, government stimulus and the expectations of growth, but the negative news optics and an increasing sense of government mismanagement could unsettle recovery.
