Author: Matthias Busuttil

The main price determinants behind the sustained rally in risky assets during the first half of the year have been primarily the improving COVID-19 data trends, namely falling case growth rates and vaccination rollouts across  regions, and secondly, the ultra-loose financing conditions adopted by the major central banks’ two-pronged approach of low policy rates and a sustained increase in money supply through quantitative easing programmes. In view of the underpinning factors of abating virus risks and the promise of cheap money for longer, asset valuations appreciated, given the higher earnings growth outlook and very lower discount rates. However, a key…

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