- Stock markets remain jittery about recovery, rates and inflation
- Markets may well consolidate this year after prices ran away from earnings in 2020
- Pension savers clobbered in the Budget
Stock markets continue to show signs of worry about economic recovery, interest rates and inflation. As a result many shares are struggling to make much progress right now and might not do so for some time.
After a very strong 2020, when share prices ignored what was happening to profits, it would not surprise me if we ended 2021 with markets down by 10 to 15 per cent and I don’t think that this would be a bad thing for long-term investors in shares.