by David Picton and Team, Picton Mahoney Asset Management
The combination of unprecedented monetary stimulus, ongoing fiscal support and the end of COVID-related lockdowns can lead to the strongest surge in global economic growth in decades. Central banks have committed to maintaining stimulus even as western economies recover, which could lead to a significant surge in stock markets and other risk assets this year. While equity markets may be “overbought” in the short run, a greater risk to their performance may be an earlier-than-expected surge in inflation once the economic expansion is well underway.
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