Matthew Haupt is a lead portfolio manager at Wilson Asset Management at the AFR:
Highly complex and unpredictable, a second wave effect is likely to lead to one of three outcomes:
- The virus takes hold and economic conditions deteriorate.
- Governments alternate between opening and closing economies.
- The virus is contained, driving a strong economic recovery.
Each of these economic outcomes support a bull market view of equities in financial year 2021 but the composition of market returns will be markedly different with each outcome.
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