Investors regain faith in the US
There is renewed investor confidence in the US economy after a successful roll-out of vaccinations, according to State Street.
Over 216 million doses had administered in the US, far beyond President Biden’s initial target of having 100 million people vaccinated within his first 100 days, and better than the majority of countries globally.
“That target was actually met on 19 March but, with the lack of tweets, which was the primary communication medium adopted by his predecessor, you might think that Biden has not really done a lot since coming into power,” the firm said in its multi-asset funds market report.
This now left the US in the position of being able to help supply vaccines to both Canada and Mexico.
As well as the COVID-19 vaccine success, investors were also optimistic after the announcement of a US$2.3 trillion ($2.96 trillion) infrastructure spending plan which would revitalise the US transport, electricity, and broadband systems.
In its multi-asset update, Raf Choudhury, head of investment strategy and research, said: “A large part of the economic recovery rests on mass vaccinations which are well under way. But, in the meantime, the economic stimulus proposal Biden released on 14 January is focused on helping to see the economy through in the interim.
“In fact, investors were buoyed by the new US$2.3 trillion infrastructure spending plan and growing optimism about the economy. The latest highs in the US market point to a renewed confidence among investors that the economic recovery is gaining pace.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Australia’s impact investing market has surged nearly eight-fold in just five years, climbing from $20 billion in value in 2020 to more than $157 billion, with much of the growth driven by green, social and sustainability (GSS) bonds.
The firm has forecast stronger global growth and higher inflation in 2026, signalling that central banks may be nearing the end of their easing cycles.
Despite ASIC’s scathing review of private credit funds, including concerns around valuation inconsistencies and mixed liquidity practices, the asset class grew 9 per cent in the last 12 months.
The fund has joined forces with Macquarie Asset Management in a USD500 million deal targeting infrastructure-linked businesses across global markets.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
