Global stocks are off to a roaring start in 2021. Readers of this column would notice that we have been bullish on the global economy and stocks over the past few months. And we have laid out in detail our reasons in past issues.

Noticeably, Asian markets are outperforming Wall Street. For instance, the bellwether index in South Korea is up 9.6%, two weeks into the new year, while indices in Indonesia, Taiwan and Singapore are up between 5.4% and 7.5%. By comparison, the Standard & Poor’s 500 index has gained 1.4% while the Dow Jones Industrial Average is up 1.5%, so far in the year-to-date.

Again, we have already written a fair bit explaining why we think emerging markets will perform better than US stocks this year. This is based on expectations of weakness in the US dollar and increased appetite for risks, as fears and uncertainties related to the Covid-19 pandemic recede with progressive immunisation of the world’s population.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook