Co-produced with Beyond Saving
I have been getting asked a lot of questions about the state of equities, and most notably why equities have been rallying so much recently. There are several reasons for this which include:
- The markets are forward looking and they have been rallying in anticipation that the economic shutdown is gradually easing.
- Furthermore, central banks have been providing enormous levels of stimulus and unprecedented liquidity actions. This liquidity suggests that it's highly unlikely that we will retest the lows seen earlier this year. So the worst of the market pullbacks