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Rational bubble puts markets on high starting point for 2021

While investors appear bullish, some wobbles in equity markets should be expected in the year ahead

©The Financial Times Limited 2020 Jan 4, 2021 / 11:11 AM IST
All Rights Reserved. FT and Financial Times are trademarks of the Financial Times Limited Not to be redistributed, copied or modified in any way.
Rational bubble puts markets on high starting point for 2021

Michael Mackenzie After navigating a global pandemic, financial markets begin 2021 with a case of déjà vu. Just like 12 months ago, bonds and equities are kicking off January at expensive starting levels. The human and economic toll of Covid-19 has left deep scars that will take a long time to heal. However, for markets, 2020 ended up being a remarkably strong year after the initial fright in March when coronavirus started to spread. For those investors who stayed the course from...

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