Financial markets rang in the new year with some healthy portions of both uncertainty and optimism. While we are still in the grasp of a global pandemic, the new year brought new leadership in D.C. and fresh stimulus measures, both here and abroad.
US Vaccinations are ahead of schedule
The process of vaccinating the U.S. population is happening ahead of schedule here and in the UK, while progress has been slower than anticipated in Europe, South America, and parts of Asia amidst new variants and new spikes in case counts. Global progress on beating back COVID will remain the #1 narrative driving financial market performance in the months ahead.
Investments in stocks were given a big boost in Q1 by two big stimulus measures that could amount to $4 trillion. There has never been a time in history where so much financial stimulus has been coordinated around the world. Global central banks are keeping financial easing measures in place, and pledging to keep them there while economies rebound, even through an expected bout of inflation in the post-pandemic recovery.
There are compelling reasons to expect the global economy to well throughout 2021, and so far the narrative has prevailed, as global stock markets started the year on a positive note. The United States, the Eurozone, the UK, Japan, and Asia all saw stocks rise during the first quarter.
Bond Prices Fall as Economy Outlook Improves
Small Caps lead but mega cap tech still strong
Second Quarter Outlook

Don’t want to miss anything?
Subscribe to our monthly newsletter for market insights.