Tapering is not yet an issue, growth is timidly coming back and oil is near 7 years high.
The energy debate is not new and is brought up in every crypto market cycle.
Positioning in the market has become less extreme, especially ahead of what has historically been a lower return period for the stock market.
The reflation trade is still alive, gold miners may provide an outsized opportunity, and the low carbon emission economy is becoming an important long-term economic driver of prices.
We need to approach this space with an open mind and without being overly tribalistic.
Asset price performance has been quite solid across the board and the Yield Curve has continued its steepening, with rates in the long end getting closer to 2%.
US Tech, Gold, and Bitcoin did very well, whilst the US Dollar and Crude Oil were the big losers of the year.
What the US elections result has taken away from the reflationary narrative has been more than offset by the vaccines headlines.
Election years have historically brought positive returns to markets, and since 1944 we only had two election years that were not positive… 2000 (Dot-com Crash) and 2008 (GFC).
The US market is still following the same Fed and Government stimulus narrative of the last months, which end ups benefitting the larger and already dominant companies of the US equity market (#tech).