2021 Market Predictions: Optimism Despite Pandemic
Despite the COVID-19 pandemic's unprecedented impact on markets and lives in 2020, economic and stock market predictions for 2021 reflect optimism. Both risky assets and safe havens gained strongly in 2020 due to excess liquidity, leading to unusual market behaviour.
The COVID-19 pandemic significantly altered economic and stock market predictions by the end of February 2020. However, stock market forecasts for 2021 remain optimistic despite ongoing infections and new mutations. Investors and soothsayers anticipate high economic and profit growth due to pent-up demand and expansionary monetary and fiscal policies.
The performance of assets in 2020 was unusual. Both risky assets like stocks and bonds, and safe havens such as US Treasury bonds and gold, gained strongly. This was due to excess liquidity, a situation where there's more money than usual in the system.
The specific authors of the 2021 stock market predictions remain unknown, as detailed records from 2021 are not available. However, the optimism persists despite the ongoing pandemic, driven by expectations of strong economic growth and profit increases.
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