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By Mark DOWDING, CIO at BlueBay Asset Management
A dovish Fed update dampened the week’s mood, with seemingly only the return of sports able to provide some life-after-lockdown cheer.
The liquidity fueled rally in risk assets appeared to run out of steam during the past week, with markets experiencing a reversal from their highs, shortly after the SP 500 had fully recouped its 2020 year-to-date losses. Notwithstanding the temptation to fit a narrative to the price action, a simple explanation could be that as markets have moved higher, so we have seen the burden of proof shift away from those who have been adopting a more bearish stance towards those who have been extrapolating that the recent rally in assets will continue. Perhaps,...
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