The final quarter of 2020 was a remarkable period for investors, capping off the most extraordinary of years.
Most asset classes posted gains, with the riskiest areas leading the way. Coming into the quarter, markets were a bit jittery on concerns about the US election, the lack of agreement on the second US stimulus package and the rapid spread of Covid-19 across Europe and the US. However, investors responded well to Biden’s victory and the passing of the US elections, and cheered even louder as news filtered through about successful vaccine trials from Pfizer, Moderna and AstraZeneca. At last we could clearly visualise what the path back to normality looked like, even if the full vaccine rollout will take many months.