Stock markets began 2021 buoyantly given the late 2020 news about vaccines. And, although it’s been known for markets to price in future events up to two years in advance, we remain caught in a transition phase.
On the one hand, there are sufficient reasons to be optimistic about a sharp vaccine-led recovery. On the other, the third wave of the pandemic in Europe (for now) threatens to derail economic progress. The spectre of inflation has also spooked investors, as we saw in bond yields.
But what can investors expect in the short to medium term, while keeping their eye on their long-term goals? David McFadzean, head of wealth management, and our new chief investment officer, Tom Caddick, discussed recent trends in financial markets, how these might affect investors in the coming months and how our portfolios are positioned to respond.