- Despite the deepest global post-war recession, risk assets have continued to gain.
- Flattening new cases in advanced economies and the continued policy support will help to keep sentiment strong.
- The further upside is limited though, with US equities back to autumn 2019 levels. Key risks are a second wave of infections and the fast deterioration in US/China relations.
- We stick to a pro-risk tilt concentrated in the higher quality buckets of risk assets. Keep a small long duration bias given the sluggish recovery, low inflation and continued central bank activism.