Vaccine a shot in the arm for cyclical stocks: The global outlook for the next 12 months

Covid jab offers hope of recovery amid lockdowns

Having emerged from a tumultuous 2020 with gains of more than 10%, global stocks are set to build on their rally over the next 12 months.

The Covid-19 vaccines allow us to look beyond the pandemic and focus on the strengthening economy. Aggressive fiscal and monetary stimulus around the world have helped engineer an economic recovery, encouraging investors to move cash into stocks. Some $133bn has flown into the equity market in recent weeks - a record in nominal terms, according to EPFR, a Boston-based data monitor that tracks flows to mutual funds and exchange traded funds widely used by retail investors.  While the pace of central bank money printing is likely to slow, a V-shaped economic rebound, led by China, shoul...