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The (underlying) market risks
The (underlying) market risks
The world economy had a negative performance in 2020 but even so the financial markets showed a positive result!
In the same token, companies with an important share of the main indexes, such as at the NASDAQ, for example, show companies with "multipliers" (share price divided by earnings per share) well above tradition.
In other words, there has been a great detachment of the "fundamentals".
Explanations that analysts offer, range from the lack of attractiveness of fixed income securities that resulted in the massive "migration" to equity securities to optimism about vaccines and the associated expectation of a robust resumption of the world economy.
Between the bet on the long-term good results (jobs, income and GDP) and the worrying news in the short and medium terms with the devastating effects of the pandemic, volatility appears as the "mediator" of the situation.
Welcome to the new reality!
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