By Chris Bailey | Tuesday 10 November 2020
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
What an interesting last twenty-four hours in the financial markets. As always with big market shifts, sustainability comes with the reality of the headline new information flow. Aside from the obvious efficacy of any vaccine or treatment mitigation, the key to watch out for in my humble opinion is what happens with bond yields. I know hard-nosed equity investors forget about the bond market, but the reality is that it is a multi-asset relative world. So rising bond yields associated with stronger hopes about an economic recovery have a huge impact in terms of sector choice and market rotations. And from the perspective of having a bunch more ‘value’ than ‘growth’ stocks in my portfolio, I hope it continues. I am not sure how to pigeonhole DCC plc (DCC)…