Bets on 2021 economic recovery largely priced in

Published Mon, Jan 18, 2021 · 05:50 AM

THE ongoing rally spurred by hopes for economic recovery has been recently put on hold by both a worsening pandemic, as well as a rising US dollar and 10-year bond yields that are responsible for massive sell-offs in riskier assets such as bitcoin and relatively overstretched equities. Bitcoin itself plunged 20 per cent from all-time highs on Jan 11, representing a spectacular US$9,000 price decline in a single day's trading.

The S&P 500 Index (SPX) itself has rallied around 200 points since the November 2020 US presidential elections. These are some signs suggesting that investors look forward to a more politically stable climate with fewe…