The markets are generally driven by fear and greed and as with most things, there are varying shades of fear and greed.
Initially there was mass panic about large scale deaths, but following the Governments financial support around the world, this mass panic gave way to – Are we going to make a profit and what’s our “Return on Capital” (ROC)?
Bonds that have traditionally been safe havens now look unattractive with negative returns, whilst stocks (although volatile) still in principle pose a decent potential ROC.
Market analysis predicts and believes that the world will still look fairly similar to the pre-Covid years when the Pandemic eases or passes.
Although the next few years growth are predicted to be low (if anything), it will be dependent on Government actions and any good news on Vaccines.
So, markets are doing well on good news stories, and frankly there’s no other better place to be invested, as most other investments types are eroding against inflation.