Surfing the wave carefully
During the lockdown phase, our full attention was focused on daily statistics regarding new COVID-19 infections and their growth rates. These data were soon joined by daily mobility figures, which serve as an indicator of economic recovery. However, the high frequency and fluctuation of these data should not prevent us from paying attention to the medium-term conditions for financial markets. With their generous supply of liquidity, central banks have created the foundation for further increases of asset prices. Investors must learn to surf cautiously on this liquidity wave and not to be too confused by the daily news flow. A risk-neutral portfolio seems to us to be the best way to get through the summer months with tranquility.