The new political balance of power in the US and the progress with vaccines are encouraging. Swiss Life Asset Managers continues to see cyclical markets on the rise.
The financial markets responded positively to the outcome of the US elections. The new President should make trade policy more predictable. Moreover, an evenly balanced Congress will reduce the risk of regulatory and tax law changes that would negatively impact corporate profits.
Despite an expected rapid deterioration of the COVID-19 situation, Swiss Life Asset Managers remains optimistic and anticipates volatile but positive stock market momentum. This is mainly due to the breakthrough with the BioNTech/Pfizer vaccine.
Swiss Life Asset Managers foresees a particularly strong performance by regions and sectors that have previously been among the losers in the pandemic.