Feeling Good, Feeling Worried, Seeing Through
As we head into the end of the year, we ask ourselves whether these great markets can continue without pausing. With the S&P index up over 25 per cent and European equity markets not far behind, we are concerned that markets are getting ahead of future expectations. The pace of returns has been spectacular this year, fuelled by both good news on the recovery, economic and earnings fronts, and ample liquidity. However, we caution that liquidity conditions may be less friendly as we peer ahead to 2022.