Conclusion…..spring has sprung
There are good reasons to look forward with a positive outlook over the near term, led front and centre by the vaccine rollout, but also heavily supported by the fiscal and monetary policy backdrop alongside the potential for a consumer spending led increase in economic activity. These are all good signs for economic activity and ‘main street’. Equity and bond markets have moved in anticipation of this and the recovery from last March’s lows has placed valuations ahead, which means corporate earnings now need to grow into their valuations. No recovery is ever straight forward, and we need to be wary of warning signs, such as bond yields rising sharply, vaccine or virus setbacks or a resurgence in geopolitical strains. The history of humanity is littered with surmounting the insurmountable challenge being faced and we are on the verge of writing another chapter in this story. On balance, it is likely to continue to pay in adopting a ‘glass half full’ approach.
It remains our great privilege that you place your continued trust in us in managing your portfolios. We continue to wish you and your families a very happy and healthy year ahead and a spring and summer full of many shared and happy memories.