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Market Insight - February 2021

January isn’t over yet and volatility is already back!

François Savary, Chief Investment Officer
Prime Partners SA,  February 2021

January isn’t over yet and volatility is already back!

After a strong start to the year in terms of the behaviour of risky assets, the month ended with a return of greater volatility.

Some offer explanations for the more erratic conditions on the stock markets, all relating to system liquidity, which would have resulted in asset “bubbles”, in equities in particular.

The record number of IPOs in January, the boom in SPACs and the mergers/acquisitions associated with these structures, or the large- scale financing of companies in the high-yield debt market, are developments that cannot be ignored.

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