It has been a highly eventful start to the year in the world of investing. From GameStop to Bitcoin, investing has been in the news consistently for the past few weeks. But with many investments beginning to take a turn for the worse, what’s currently driving the markets?
2020 ended with an inoculated bang. Despite renewed lockdowns in Europe and rising COVID-19 infections globally, risk assets continued their march upwards. This was amid hopes for reflation, better growth and higher earnings, supported by a backdrop of more fiscal stimulus in the US, a Brexit deal and the beginnings of vaccine rollouts.
In September, we brought it to your attention that the path for suspended property funds to reopen had cleared as the Royal Institution of Chartered Surveyors began to remove the ‘material uncertainty’ clause. This was imposed on property funds in March following the coronavirus pandemic sending stock markets tumbling.
It is an understatement to say that a lot has happened since our last market update on the 14th of October. Two key events have changed the dynamic of the investment landscape, both in the short and long term.