Equities Should Rally Into Year End: Citi’s Sacks

The video discusses how markets respond to news, particularly focusing on sector price actions and the potential for a rally into 2021. It highlights a shift towards COVID cyclicals and value sectors. The European market outlook is analyzed, considering factors like policy support and attractive valuations. The investment strategy involves buying in tranches during market dips due to ongoing uncertainties. The earnings season in Europe is positive, with expectations of significant EPS growth supported by GDP growth and the EU Recovery Fund.

What factors are expected to drive a shift in interest towards COVID cyclicals?

How do the current valuations for European equities compare to fixed income?

What is the outlook for the market in relation to the US election?

What is the expected EPS growth for 2021 according to the analysis?

What assumptions are being made regarding the EU Recovery fund?