FNArena’s Weekly Insights – June 21 2021
In this week’s Weekly Insights:
-The Year Of Doubt
-Conviction Calls
-Research To Download
The Year Of Doubt
By Rudi Filapek-Vandyck, Editor FNArena
Others see a world dominated by central bank interventions, fiscal stimulus, a virus that refuses to surrender, still rising inequality, asset price inflation and a growing consensus on climate action, but I look upon 2021 as the Year Of Doubt.
Are equity prices finally ready to come back to earth? How high can house prices rise, really? Is bitcoin making a fool out of all of us? ‘Value’ stocks have had a rough time for most of the past decade, why aren’t they rallying more? Surely corporate bonds are today’s ultimate bubble?
Inflation cannot stay ‘hidden’ forever, or can it? Why are bond yields falling? Whatever happened to gold as the inflation-safe store of wealth? Is global debt ever going to shrink? Are we already too late to save the world from climate disaster? Is war with China inevitable? What will the New Normal look like?
These are still only a selected few of the many doubts and questions that live inside human brains in 2021. And yet, somehow equity indices have denied all forecasts for a range-trading outlook, or worse, and set new record after new record as we approach mid-year.
It’s just one of many inconsistencies inside financial markets in 2021.
