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Our views 07 April 2021

2021 Q1 review: the re-opening trade

5 min read

A year on from the March 2020 low, vaccine optimism, fresh fiscal stimulus from President Biden and the prospect of a re-opening of the world economic into 2022 saw stocks move to record levels.

Meanwhile, fear of eventual monetary tightening triggered a sharp sell off in government bonds with US Treasuries experiencing their greatest quarterly rise in yield since Donald Trump’s 2016 election victory. Commodities rallied to thirteen-year highs, leading cross-asset returns, as oil continued its rebound. Value stocks were a big beneficiary of the re-opening trade as leadership rotated away from the highly valued technology shares which performed so strongly last year.

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