However, analysts have suggested that high expectations have largely been priced in, meaning the share price reaction thus far has skewed slightly to the downside.
Inflation spike not the end of the rally
The latest inflation readings out of the U.S. and Europe have risen sharply, and UBS strategists anticipate that this will continue over the coming months with signs of price pressures enduring.
However, in a note to investors Thursday, they attributed this to base effects and short-term supply constraints, rather than structural issues.
UBS Global Wealth Management Chief Investment Officer Mark Haefele said this indicated that the spike in inflation will likely be transitory and should be seen as a potential source of volatility, rather than a long-term threat to the overall equity market rally.
Stock markets will break out of current stagnation and continue the rally, analysts say
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Stock Markets Will Break Out of Current Stagnation and Continue the Rally, Analysts Say
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The urge to splurge: Don t underestimate strength and speed of post-lockdown market revival
Consumers spending spree key to recovery
Mike Willans and Bimal Patel of Canada Life
Mike Willlans and Bimal Patel
15 April 2021
It is easy to overestimate the social changes wrought by Covid-19. Yes, online purchases and Netflix subscriptions soared, Zoom is now an everyday tool and surveys suggest that we got comfortable with lockdown life and would prefer less time in the office. But how will we feel in a few months time?
We are sociable animals who enjoy variety, novelty and movement. Many of the things we used to do - such as going to a cinema, working with colleagues in an office, browsing in shops, or travelling for the sake of travelling - were things that we did for a reason. It was because we liked doing them.