An incredible year for investment markets. Starting with a recession and then ending with record positive economic growth numbers in the second half of the year with November being the best month for the Australian share market since 1988.
The combination of employment support payments, cutting of interest rates and tax incentives have resulted in most countries being on the way to recovering from their sharp depression-like contractions in economic activity in the first half of 2020. Shares in technology, consumer discretionary, communications and healthcare businesses have been winners while banks, travel and real estate trusts have lagged behind this year.
Optimism in the outlook has been boosted by further developments on COVID-19 vaccines as well as the increasing likelihood of an orderly transition of the US presidency. In Australia consumer confidence has reached its highest level since February 2020. Although COVID-19 case numbers remain very high, over the coming months we anticipate more progress on the virus vaccine front and steady progress towards business reopening, unemployment reducing and economies strengthening.
We wish all our clients a peaceful and safe festive season and we hope next year will be less interesting than 2020!