SOMETHING HAS TO GIVE IN A REGIME SHIFT. BE PREPARED, THERE WILL BE OPPORTUNITIES FOR VALUE INVESTORS.
THE GREAT DIVERGENCE
It’s been one year now since the Covid-19 pandemic disrupted the world. It changed our lives, but financial markets seem to have side-lined this dramatic event as a temporary pullback, which was quickly recovered and forgotten as most risk assets achieved new highs. Hopes persist that a “here and now” vaccine will rescue the global economy and overshadow unexciting recent economic data and the uncertainties of the virus cycle. This translates into an unprecedented divergence between markets and the real economy, raising questions about the sustainability of current valuations.