December 28, 2020

Conditions appear very good for equities heading into 2021. Governments are spending trillions to stimulate economies and we estimate > $50 trillion of fixed income or bank deposits earning nothing or next to nothing. Meanwhile, globalization and technologies are concentrating profits in corporations and a greater number of individual investors are entering the market at a time when the number of public companies has shrunk. Markets have momentum, comparisons are easy, and investors aren’t requiring fast growing companies to show a profit.