The US elections and news of covid-19 vaccines again sent investors to a frenzy in November 2020. Banks and fund houses remain optimistic in their outlooks. However, investors willing to take risks should also consider that there are alternatives to every scenario.
Here we look at the bull and bear market scenarios for the year ahead.
The November rally
Global market performance in November shows how quickly things can turn around for areas that have struggled or been out of favour. The MSCI sector index for energy stocks, for example, rose by more than 25% in euro terms in the month. The country indices of Spain, Italy and Austria, all of which are bank and/or commodity heavy climbed by similar amounts.
Will this turnaround trend continue? It’s a question recently posed by Morningstar UK manager research director Jon Miller. Elsewhere, Goldman Sachs recently predicted the S&P500 could rise by another 20 per cent over the next year. Indeed, optimism prevails for virtually every risky segment of capital markets worldwide.
