Market Update - December 2020

FROM THE GLOBAL ASSET ALLOCATION TEAM 
- By Candice Bangsund, Vice President and Portfolio Manager, Global Asset Allocation

Optimism flourished in November and global equity markets soared to new highs after some encouraging reports of progress on the vaccine-front, which raised the prospect for an end to the pandemic and emboldened expectations for a rapid recovery in growth. The unveiling of positive efficacy results from three COVID-19 vaccine candidates propelled the market rally and largely overshadowed some worrisome virus trends across North America and Europe. Meanwhile, investors cheered the prospect for a divided U.S. government. All signs are pointing towards a peaceful transition of power to the Biden administration in January, while the nomination of former Federal Reserve Chair Janet Yellen for Treasury Secretary and expectations that corporate tax hikes are now off the table also reinvigorated sentiment.