18 April 2021
March was a very strong market environment for global equities. The market outlook in general remains optimistic, due to a combination of lower Covid infection rates, accelerated vaccination rates (outside of Australia) and strong GDP and earnings growth expectations.
We still see a continued global reopening and an ultra- accommodative monetary and fiscal environment as supportive
for equity markets. Whilst it could be spooked by further steepening of the yield curve, the coalition of central banks are watching any increased volatility closely with every intention to keep interest rates under control. While the abundance of earnings growth in 2021 might favour some of the more cyclical parts of the market, we do believe that a lot of that has been priced in already in earlier months.