For some time now, we have been highlighting the wide valuation gap between the ‘value' and ‘growth/quality' ends of the market. Earlier in 2020, we suggested that the drivers of this extreme dispersion might be coming to an end and the 2020s could be the decade of the ‘cheap asset'.

If the UK equity market was out of favour at the beginning of 2020, it's even more so now. Until the arrival of three vaccines prompted a wave of market exuberance towards the end of the year, UK equities had fallen approximately 20%. The only two worse-performing equity markets were Russia and Brazil...

According to Eric Dubos, CFO and member of the MACSF COMEX, with negative rates on a good part of the yield curve, the search for yield pushes investors to extend the duration of portfolios ...

Global equities can continue to perform well in 2021, but tech may have to share the limelight with some unloved areas. Meanwhile, a number of mega-trends will continue to gather pace.

Understanding how individual companies are likely to perform in an environment dominated by the major themes that we have identified is likely to yield significant opportunities over the coming quarters and years.